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THE GEORGE AND HELEN LADD LIBRARY 

BATES COLLEGE 
LEWISTON, MAINE 




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BATES COLLEGE 

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LEWiSTON. MAINE 



PUBLIC PAPERS OF THE PRESIDENTS 
OF THE UNITED STATES 



PUBLIC PAPERS OF THE PRESIDENTS 
OF THE UNITED STATES 

John F. Kennedy 

Containing the Public MessageSj SpeecheSj and 
Statements of the President 

JANUARY I TO DECEMBER 3I, I962. 
1962 




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UNITED STATES GOVERNMENT PRINTING OFFICE 
WASHINGTON : I963 



BATES COLLEGE 

LI BINARY 

LEWiSTON.'fVlAlNE 




PUBLISHED BY THE 

OFFICE OF THE FEDERAL REGISTER 

NATIONAL ARCHIVES AND RECORDS SERVICE 

GENERAL SERVICES ADMINISTRATION 



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For sale by the Superintendent of Documents, U.S. Government Printing Office 
Washington, D.C., 20402 - Price $9 




FOREWORD 



THESE PAGES contain the texts of my speeches, messages, press con- 
ferences and major statements of the year 1962. This accumulation of 
documents suggests the immense variety of problems with which a 
President of the United States in the 20th century must deal. It also 
tells the story of a year rich in challenge — and a year in which, I believe, 
the people of the United States can take legitimate pride. 

Future historians, looking back at 1962, may well mark this year as 
the time when the tide of international politics began at last to flow 
strongly toward the world of diversity and freedom. Following the 
launching of Sputnik in 1957, the Soviet Union began to intensify its 
pressures against the non-communist world — especially in Southeast 
Asia, in Central Africa, in Latin America and around Berlin. The 
notable Soviet successes in space were taken as evidence that communism 
held the key to the scientific and technological future. People in many 
countries began to accept the notion that communism was mankind's 
inevitable destiny. 

1962 stopped this process — and nothing was more important in de- 
flating the notion of communist invincibility than the American re- 
sponse to Soviet provocations in Cuba. The combination of firmness and 
restraint in face of the gravest challenge to world peace since 1939 did 
much to reassure the rest of the world both about the strength of our 
national will and the prudence of our national judgment. Menacing 
problems remained at the end of the year: if West Berlin seemed tem- 
porarily secure and Congo on the road to national unification, condi- 
tions in Laos and Vietnam were still precarious, and the Cuban crisis 
was not resolved. Yet it was increasingly obvious that the momentum 
of the post-Sputnik offensive had been halted. At the same time, Ameri- 
can scientists, engineers and astronauts helped recapture for the United 
States the lead in important aspects of the space effort. And, within the 
communist empire itself, the forces of diversity and pluralism were 



Foreword 

straining the supposed monolithic unity of communist ideology and 
action. 

This situation gave the free peoples opportunity to prosecute with 
new vigor the constructive action necessary to build the strength and 
responsibility of the non-commimist world. To this effort, the United 
States made indispensable contributions through the passage of the 
Trade Expansion Act and through staunch and continuing support of 
the foreign aid program and the United Nations. Our attempts to ad- 
vance the cause of world disarmament were, unhappily, less successful. 
Nonetheless, I believe that the year 1962 showed heartening progress 
toward the goal of a; world of independent nations, each developing 
according to its own needs and aspirations, and all united by common 
respect for the rights of others, a common loyalty to the world com- 
munity and a common longing for peace. 

The foundation of foreign policy is, of course, the vigor and health 
of the national community. In 1962 the Congress enacted a number of 
measures designed to strengthen our economy, develop our resources 
and confirm the rights of our citizens. On occasion, special circumstances 
required me to take drastic action — at one time, to protect an American 
citizen in his right to education at a state university; and, at another 
time, to prevent an inflationary rise in the price of steel. 

1962 was, both abroad and at home, a year of effort and achievement. 
Our gains were made possible by fruitful collaboration among the 
branches of government and between the government and the people 
in pursuit of our national objectives. Certain of these objectives — espe- 
cially those of peace in the world and of accelerated economic growth, 
full employment, and full equality of opportunity in the United States — 
still elude us and therefore will demand even more thoughtful and 
urgent attention in the years to come. 



/(LJ L^ 



VI 



PREFACE 

IN THIS VOLUME are gathered most of the public messages and 
statements of the President of the United States that were released 
by the White House during 1962. Similar volumes covering the ad- 
ministration of President Eisenhower and the first two years of 
President Truman are also available. Volumes covering the period 
January i, 1947-January 20, 1953, and the year 1963 are under 
preparation. 

This series was begun in 1957 in response to a recommendation of 
the National Historical Publications Commission. An extensive com- 
pilation of the messages and papers of the Presidents, covering the 
period 1789 to 1897, was assembled by James D. Richardson and 
published under congressional authority between 1896 and 1899. Since 
that time various private compilations were issued, but there was no 
uniform, systematic publication comparable to the Congressional Rec- 
ord or the United States Supreme Court Reports. Many Presidential 
papers could be found only in mimeographed White House releases 
or as reported in the press. The National Historical Publications Com- 
mission therefore recommended the establishment of an official series 
in which Presidential writings and utterances of a public nature could 
be made promptly available. 

The Commission's recommendation was incorporated in regulations 
of the Administrative Committee of the Federal Register issued under 
section 6 of the Federal Register Act (44 U.S.C. 306). The Commit- 
tee's regulations, establishing the series and providing for the coverage 
of prior years, are reprinted at page 944 as "Appendix D." 

VII 



Preface 

CONTENT AND ARRANGEMENT 

The text of this book is based on Presidential materials issued during 
1962 as White House releases and on transcripts of news conferences. 
Original source materials, where available, have been used to protect 
against errors in transcription. A list of White House releases from 
which final selections were made is published at page 917 as "Appen- 
dix A." 

Addresses and speeches have been printed as actually delivered. In 
a few instances the White House issued advance releases, based on 
the prepared text of addresses or remarks, which differ from the text 
as actually delivered. Such releases have been appropriately noted. 

Proclamations, Executive orders, and similar documents required 
by law to be published in the Federal Register and Code of Federal 
Regulations are not repeated. Instead, they are listed by number and 
subject under the heading "Appendix B" at page 937. 

The President is required by statute to transmit numerous reports 
to Congress. Those transmitted during the period covered by this 
volume are listed at page 943 as "Appendix C." 

The items published in this volume are presented in chronological 
order, rather than being grouped in classes. Most needs for a classified 
arrangement are met by the subject index. For example, a reader 
interested in news conferences will find them listed in the index under 
the heading "news conferences." 

The dates shown at the end of item headings are White House 
release dates. In instances where the date of the document differs 
from the release date that fact is shown in brackets immediately 
following the heading. Other editorial devices, such as text notes, 
footnotes, and cross references, have been held to a minimum. 

Remarks or addresses were delivered in Washington, D.C., unless 
otherwise indicated. Similarly, statements, messages, and letters were 

VIII 



Preface 

issued from the White House in Washington unless otherwise 

indicated. 
The planning and publication of this series is under the direction 

of David C. Eberhart of the Office of the Federal Register. The editor 

of the present volume v^as Warren R. Reid, assisted by Mildred B. 

Berry. Frederick L. Holborn, Special Assistant in the White House 

Office, provided aid and counsel in the selection and annotation of the 

materials. Frank H. Mortimer of the Government Printing Office 

developed the typography and design. 

Wayne C. Grover 
Archivist of the United States 

Bernard L. Boutin 

Administrator of General Services 

June 24, 1963 



IX 



CONTENTS 

Page 

FRONTISPIECE— Picture of the President taken in Seattle, Wash., 
November i6, 1961. 

FOREWORD V 

PREFACE VII 

LIST OF ITEMS XIII 

PUBLIC PAPERS OF JOHN F. KENNEDY I 

Appendix A — ^White House Press Releases, 1962 . . . 917 

Appendix B — Presidential Documents Published in the Federal 

Register, 1962 937 

Appendix C — Presidential Reports to the Congress, 1962 . . 943 

Appendix D — Rules Governing This Publication .... 944 

INDEX 947 



XI 



LIST OF ITEMS 



Page 

1 Exchange of Messages With President Nazim al-Qudsi of the 
Syrian Arab RepubUc on the Occasion of His Inauguration. 
January 4, 1962 i 

2 Message to Chancellor Adenauer on His 86th Birthday. Jan- 
uary 5, 1962 I 

3 Remarks in Columbus at a Birthday Dinner for Governor 
DiSalle. January 6, 1962 i 

4 Statement by the President Following a Meeting With Gen- 
eral Clay on the Berlin Situation. January 7, 1962 4 

5 Remarks to the Vienna Choir Boys. January 9, 1962 4 

6 Statement by the President on Receiving Report on Automa- 
tion by the Advisory Committee on Labor-Management 
Policy. January 11, 1962 4 

7 Annual Message to the Congress on the State of the Union. 
January 11, 1962 5 

8 The President's News Conference of January 15, 1962 15 

9 Letter to the President of the Senate and to the Speaker of the 
House on Reorganization of the Department of the Army. 
January 16, 1962 23 

10 Statement by the President at a Meeting of the Business Ethics 
Advisory Council. January 16, 1962 24 

11 Statement by the President in Response to Report of the Com- 
mittee on Traffic Safety. January 17, 1962 24 

12 Remarks Upon Signing Orders Relating to Personnel Manage- 
ment in the Federal Service. January 17, 1962 25 

XIII 



List of Items 

Page 

13 Annual Budget Message to the Congress, Fiscal Year 1963. 
January 18, 1962 25 

14 Remarks at the G^nference Opening the 1962 Savings Bond 
Campaign. January 19, 1962 39 

15 Address at the Inaugural Anniversary Dinner. January 20, 
1962 40 

16 Message to the Congress Presenting the President's First Eco- 
nomic Report. January 22, 1962 42 

17 Statement by the President Concerning the Dominican 
Republic. January 22, 1962 58 

18 Exchange of Letters With Ronald Ngala Following U.S. 
Disaster Assistance to Kenya. January 22, 1962 58 

19 Remarks to the National Conference on Milk and Nutrition. 
January 23, 1962 59 

20 The President's News Conference of January 24, 1962 60 

21 Special Message to the Congress Reporting Settlement of the 
1961 Maritime Strike. January 25, 1962 67 

22 Special Message to the Congress on Foreign Trade Policy. 
January 25, 1962 68 

23 Special Message to the Congress Transmitting Reorganization 
Plan I of 1962. January 30, 1962 77 

24 Special Message to the Congress Transmitting a Bill for the 
Purchase of United Nations Bonds. January 30, 1962 81 

25 Special Message to the Congress on Agriculture. January 

31. 1962 82 

26 Message to the Congress Transmitting Report "United States 
Aeronautics and Space Activities, 1961." January 31, 1962 90 

XIV 



List of hems 

Page 

27 The President's News Conference of January 31, 1962 90 

28 Special Message to the Congress on Public Welfare Programs. 
February i, 1962 98 

29 Message to the Congress Transmitting First Annual Report 
of the U.S. Arms Control and Disarmament Agency. Febru- 
ary 1, 1962 103 

30 Remarks of Welcome to the Members of the U.S. Delegation 
Upon Their Return From the Punta del Este Conference. 
February i, 1962 104 

31 Letter to the President of the Senate and to the Speaker of the 
House Transmitting Bill To Authorize U.S. Loans to the 
International Monetary Fund. February 2, 1962 104 

32 White House Statement Concerning the Embargo on Trade 
With Cuba. February 3, 1962 106 

33 Statement by the President Upon Approving Bill Relating to 
Distribution of General Motors Shares. February 3, 1962 106 

34 Recorded Message to the People of Viet-Nam on the Occasion 

of Their New Year's Celebration. February 5, 1962 108 

35 Toasts of the President and Prime Minister Adoula of the 
Republic of the Congo. February 5, 1962 108 

36 Remarks at the Presentation to the White House of President 
Wilson's Typewriter. February 6, 1962 109 

37 Special Message to the Congress on Education. February 6, 
1962 no 

38 Remarks at Ceremony on the Signing of Equal Opportunity 
Agreements by Leading Employers. February 7, 1962 117 

39 Letter to the President of the Senate and to the Speaker of the 
House Transmitting a Communications Satellite Bill. Feb- 
ruary 7, 1962 118 

XV 



List of Items 

Page 

40 The President's News Conference of February 7, 1962 120 

41 Joint Statement With the British Government Concerning 
Nuclear Tests. February 8, 1962 128 

42 Joint Message With Prime Minister Macmillan to Chairman 
Khrushchev on the Forthcoming Disarmament Negotiations 

in Geneva. • February 12, 1962 128 

43 Remarks to the Members of the President's Commission on 

the Status of Women. February 12, 1962 130 

44 Remarks of Welcome to King Saud of Saudi Arabia at An- 
drews Air Force Base. February 13, 1962 130 

45 Joint Statement Following Discussions With King Saud. 
February 13, 1962 131 

46 Toasts of the President and King Saud. February 13, 1962 131 

47 Remarks to the Policy Committee of the Communications 
Workers of America. February 14, 1962 132 

48 Message to Chairman Khrushchev Concerning the Forth- 
coming Disarmament Negotiations in Geneva. February 14, 
1962 132 

49 Remarks at the Presentation of an Award to the National 
Association of Broadcasters. February 14, 1962 133 

50 The President's News Conference of February 14, 1962 134 

51 Remarks to a Group of Visiting Foreign Educators. Febru- 
ary 16, 1962 142 

52 Message to President Kekkonen of Finland on the Occasion 

of His Reelection. February 17, 1962 142 

53 Letter to the President of the Senate and to the Speaker of the 
House Transmitting a Proposed Stand-By Capital Improve- 
ments Act. February 19, 1962 143 

XVI 



List of hems 

Page 

54 Statement by the President Upon Meeting With Labor 
Minister Franco Montoro of Brazil. February 19, 1962 144 

55 Special Message to the Congress on Federal Pay Reform. 
February 20, 1962 145 

56 Remarks Following the Orbital Flight of Col. John H. 
Glenn, Jr. February 20, 1962 150 

57 Telephone Conversation With Colonel Glenn Aboard the 
U.S.S. Noa. February 20, 1962 150 

58 Remarks Upon Receiving a Progress Report on Area Re- 
development in Southern IlHnois. February 21, 1962 150 

59 The President's Nev^s Conference of February 21, 1962 151 

60 Reply to Chairman Khrushchev's Message on the Flight of 
Colonel Glenn. February 21, 1962 158 

61 Remarks at the Presentation of NASA's Distinguished Service 
Medal to Dr. Robert R. Gilruth and Col. John H. Glenn, Jr. 
February 23, 1962 159 

62 Message to Chairman Khrushchev Concerning the Forth- 
coming Disarmament Negotiations in Geneva. February 25, 
1962 160 

63 Remarks on the 20th Anniversary of the Voice of America. 
February 26, 1962 162 

64 Letter to the President of the Senate and to the Speaker of the 
House Transmitting a Bill To Continue and Expand the 
Peace Corps. February 26, 1962 164 

65 Special Message to the Congress on National Health Needs. 
February 27, 1962 165 

66 Statement by the President Upon Receiving Report of the 
Presidential Railroad Commission. February 28, 1962 173 

715-405 0—64 2 XVII 



TJst of Items 

Page 

67 Statement by the President Recorded for the Opening of the 
Red Cross Campaign. February 28, 1962 175 

68 Remarks at the loth Annual Presidential Prayer Breakfast. 
March i, 1962 175 

69 Special Message to the Congress on Conservation. March i, 
1962 176 

70 Remarks at the White House to Members of the American 
Legion. March i, 1962 184 

71 Radio and Television Address to the American People: 
"Nuclear Testing and Disarmament." March 2, 1962 186 

72 Letter to the President of the Senate and to the Speaker of the 
House Proposing To Amend the Small Business Act. March 

5, 1962 192 

73 Message to Chairman Khrushchev Concerning the Opening 

of the Geneva Disarmament Negotiations. March 6, 1962 193 

74 Remarks at the i8th Annual Washington Conference of the 
Advertising Council. March 7, 1962 194 

75 The President's News Conference of March 7, 1962 196 

76 Special Messages to the Congress on the Trade Agreements 
Concluded at the Geneva Tariff Conference. March 7, 1962 204 

77 Address at Miami Beach at a Fundraising Dinner in Honor 

of Senator Smathers. March 10, 1962 208 

78 Message to the People of Greece on the 15th Anniversary of 

the Truman Doctrine. March 12, 1962 211 

79 Message to the People of Turkey on the 15th Anniversary of 

the Truman Doctrine. March 12, 1962 211 

80 Letter to the President of the Senate and to the Speaker of the 
House on the Unemployment Compensation System. March 

12, 1962 212 

XVIII 



List of Items 

Page 

8i Remarks on Accepting Invitation To Address a Rally in Sup- 
port of Medical Care for the Aged. March 12, 1962 213 

82 Message to the American Association for the United Nations. 
March 12, 1962 213 

83 Special Message to the Congress on Foreign Aid. March 13, 
1962 214 

84 Remarks of Welcome to President Ahidjo of the Cameroon at 

the Washington National Airport. March 13, 1962 218 

85 Toasts of the President and President Ahidjo. March 13, 
1962 219 

86 Address on the First Anniversary of the Alliance for Progress. 
March 13, 1962 220 

87 Joint Statement Following Discussions With President Ahidjo 

of the Cameroon. March 14, 1962 224 

88 Joint Statement FoUow^ing Discussions With Deputy Prime 
Minister McEwen of Australia. March 14, 1962 225 

89 The President's News Conference of March 14, 1962 225 

90 Letter to Secretary Rusk on the Opening of the Geneva Dis- 
armament Conference. March 14, 1962 232 

91 Statement by the President Upon Signing the Manpower 
Development and Training Act. March 15, 1962 233 

92 Message to the Congress Transmitting the 15th Annual 
Report on U.S. Participation in the United Nations. March 

15, 1962 234 

93 Special Message to the Congress on Protecting the Consumer 
Interest. March 15, 1962 235 

94 Joint Statement With the President of Mexico Concerning 
the Salinity of Waters Delivered Under the 1944 Treaty. 
March 16, 1962 243 

XIX 



List of Items 

Page 

95 Statement by the President on St. Patrick's Day. March 17, 
1962 243 

96 Message to Chairman Khrushchev Proposing Joint Action 

in the Exploration of Outer Space. March 18, 1962 244 

97 Statement by the President on the French-Algerian Cease- 
Fire Agreement. March 18, 1962 246 

98 Letter to the Chairmen, Senate Finance and House Ways 
and Means Committees, Concerning Tariff Decisions. 
March 19, 1962 246 

99 Statement by the President Upon Signing Order Relating 
to the Administration of the Ryukyu Islands. March 19, 
1962 247 

100 Letter to the Chairman, Atomic Energy Commission, on 

the Development of Civilian Nuclear Powder. March 20, 1962 248 

loi Statement by the President Upon Approving Amendments to 
the Welfare and Pension Plans Disclosure Act. March 20, 
1962 249 

102 Letter to the President of the Senate and to the Speaker of 
the House Transmitting a Bill To Stimulate Construction of 
Coal Pipelines. March 20, 1962 249 

103 Remarks of Welcome to President Olympio of Togo at the 
Washington National Airport. March 20, 1962 250 

104 Toasts of the President and President Olympio. March 20, 
1962 251 

105 Joint Statement FoUov^ing Discussions With President 
Olympio of Togo. March 21, 1962 253 

106 Message to Governor General Gopallaw^a of Ceylon. March 

21, 1962 253 

107 The President's New^s Conference of March 21, 1962 254 

XX 



List of Items 

Page 

io8 Letter to the Chairman, House Ways and Means Committee, 

on the Tax Bill March 22, 1962 262 

109 Address in Berkeley at the University of CaHfornia. March 

23, 1962 263 

no Remarks Upon Presenting a Congressional Award to 

Robert Frost. March 26, 1962 266 

111 Letter to the Chairmen, House and Senate Public Works 
Committees, Proposing a Capital Improvements Program for 
Depressed Areas. March 26, 1962 267 

112 Remarks Upon Receiving a Statement by a Group of Physi- 
cians on Medical Care for the Aged. March 27, 1962 269 

113 Remarks Upon Presenting ''E" Awards for Exports Promo- 
tion. March 28, 1962 269 

114 Letter to the President of the Senate and to the Speaker of 
the House Transmitting a Report on Balance of Payments. 
March 28, 1962 270 

115 The President's News Conference of March 29, 1962 271 

116 Statement by the President on Nuclear Test Inspection. 
March 29, 1962 278 

117 Remarks on the 20th Anniversary of the Inter-American De- 
fense Board. March 29, 1962 280 

118 Special Message to the Congress Transmitting Reorganiza- 
tion Plan 2 of 1962. March 29, 1962 280 

119 Statement by the President Upon Appointing Byron White 

to the Supreme Court. March 30, 1962 283 

120 Statement by the President on the Need for Extending the 
Unemployment Compensation Program. March 31, 1962 283 

121 Telephone Messages to Labor and Management Leaders Fol- 
lowing the Steel Settlement. March 31, 1962 284 

XXI 



List of Items 

Page 

122 Message to the UNESCO Meeting of Asian Ministers of Edu- 
cation in Tokyo. April i, 1962 284 

123 Statement by the President on the 50th Anniversary of the 
International Joint Commission, United States and Canada. 
April 2, 1962 285 

124 Remarks of Welcome to President Goulart of Brazil at 
Andrews Air Force Base. April 3, 1962 286 

125 Toasts of the President and President Goulart. April 3, 1962 287 

126 Joint Statement Following Discussions With President 
Goulart of Brazil. April 4, 1962 287 

127 Remarks to Representatives of State Agricultural Stabiliza- 
tion and Conservation Committees. April 4, 1962 289 

128 Letter to the President of the Senate and the Speaker of the 
House Transmitting Bill To Create a Land Conservation 
Fund. April 4, 1962 291 

129 Special Message to the Congress on Transportation. April 

5, 1962 292 

130 Letter to the President of the Senate and to the Speaker of 
the House Transmitting Bill To Broaden Self-Government 

in the Virgin Islands. April 6, 1962. 306 

131 Message to President Macapagal of the Philippines on Bataan 
Day. April 9, 1962 307 

132 Remarks on the 50th Anniversary of the Children's Bureau. 
April 9, 1962 308 

133 Remarks Upon Proclaiming Voluntary Overseas Aid Week. 
April 9, 1962 311 

134 Joint Statement With the United Kingdom on Nuclear Test- 
ing. April 10, 1962 311 

XXII 



List of Items 

Page 

135 Message to Admiral Deiinison on the loth Anniversary of 

the NATO Naval Headquarters at Norfolk. April 10, 1962 312 

136 Letter to the President of the Senate and to the Speaker of 
the House on Extension of Temporary Unemployment Com- 
pensation. April 10, 1962 313 

137 Letter to Senator Eastland on Pending Legislation Relating 

to Drug Marketing. April 11, 1962 313 

138 Remarks of Welcome to the Shah and the Empress of Iran 

at the Washington National Airport. April 11, 1962 315 

139 The President's News Conference of April 11, 1962 315 

140 Statement by the President on the Release of National Guard 

and Reserve Units. April 11, 1962 322 

141 Toasts of the President and the Shah of Iran. April 11, 
1962 323 

142 Statement by the President on Equal Opportunity in Hous- 
ing. April 12, 1962 324 

143 Letter to the President of the Senate and to the Speaker of 
the House Transmitting a Report on Employee Training. 
April 12, 1962 324 

144 Joint Statement Following Discussions With the President 

of the European Economic Community. April 12, 1962 325 

145 Statement by the President Following a Meeting With Gen- 
eral Clay on the Berlin Situation. April 12, 1962 325 

146 Letter to President Goulart of Brazil on the Signing of an 
Alliance for Progress Agreement With Brazil. April 13, 
1962 326 

147 Joint Statement Following Discussions With the Shah of Iran. 
April 13, 1962 327 

XXIII 



List of Items 

Page 

148 Remarks Aboard the U.S.S. Enterprise After Observing 
Naval Maneuvers. April 14, 1962 328 

149 Remarks at the Marine Air Station, Cherry Point, North 
Carolina. April 14, 1962 328 

150 Remarks at a White House Musical Program for Youth. 
April 16, 1962 329 

151 Letter to the President of the Senate and to the Speaker of 
the House Concerning the Federal Reserve System. April 

17, 1962 329 

152 The President's Nev^s Conference of April 18, 1962 331 

153 Letter to the Secretary of Commerce and to the Housing and 
Home Finance Administrator Concerning Urban Transpor- 
tation. April 19, 1962 339 

154 Letter to the President of the Senate and to the Speaker of 
the House on Withholding of Federal Employee Organiza- 
tion Dues. April 19, 1962 340 

155 Remarks in Palm Beach Upon Opening by Remote Control 

the Seattle World's Fair. April 21, 1962 341 

156 Transcript of Interviev^ With Mrs. Eleanor Roosevelt Re- 
corded for National Educational Television. April 22, 1962 341 

157 Remarks of Welcome to Prime Minister Macmillan at An- 
drevv^s Air Force Base. April 27, 1962 344 

158 Remarks at the White House Correspondents and Nev^s 
Photographers Associations Dinner. April 27, 1962 344 

159 Remarks to a Group of Descendants of Civil War Medal of 
Honor Winners. April 28, 1962 345 

160 Joint Statement FoUov^ing Discussions With Prime Minister 
Macmillan. April 29, 1962 346 

XXIV 



List of hems 



Page 



i6i Remarks at a Dinner Honoring Nobel Prize Winners of the 

Western Hemisphere. April 2% 1962 347 

162 Address Before the United States Chamber of Commerce on 

Its 50th Anniversary. April 30, 1962 348 

163 Letter to the President of the Senate and to the Speaker of 
the House on Federal Research and Development Contracts. 
May 1, 1962 352 

164 Statement by the President Upon Receiving a Report on 
Collective Bargaining and Industrial Peace. May i, 1962 353 

165 Statement by the President on the First Anniversary of the 
Area Redevelopment Act. May i, 1962 354 

166 Statement by the President Upon Signing Bill Providing for 
Educational Television. May i, 1962 355 

167 Letter to the President of the National Civil Service League 
Concerning Federal Pay Reform. May 3, 1962 356 

168 Toasts of the President and Chancellor Gorbach of Austria. 
May 3, 1962 356 

169 Joint Statement Following Discussions With Chancellor 
Gorbach. May 3, 1962 357 

170 Address in New^ Orleans at the Opening of the Nev^ Dock- 
side Terminal. May 4, 1962 357 

171 Remarks in New Orleans at a Civic Reception. May 4, 1962 362 

172 Remarks at Elgin Air Force Base, Florida, After Witnessing 

a Flying Demonstration. May 4, 1962 363 

173 Remarks to a Group of Civil Air Patrol Cadets. May 7, 1962 363 

174 Address in Atlantic City at the Convention of the United 
Auto Workers. May 8, 1962 364 

XXV 



List of hems 

Page 

175 Message to the Veterans Association of Brazil on the Anni- 
versary of V-E Day. May 8, 1962 370 

176 Letter to the President of the Senate and to the Speaker of 
the House Concerning Standby Authority To Reduce Income 
Taxes. May 8, 1962 371 

177 Remarks to Members of the Commerce Committee for the 
Alliance for Progress. May 9, 1962 372 

178 Toasts of the President and Prime Minister Gerhardsen of 
Norway. May 9, 1962 373 

179 The President's News Conference of May 9, 1962 375 

180 Remarks at a Reception for Foreign Students on the White 
House Lawn. May 10, 1962 383 

181 Remarks on Plans for a Permanent Scientific and Industrial 
Exposition in Washington. May 10, 1962 385 

182 Remarks Upon Presenting Lifesaving Awards to Members 

of the School Safety Patrol. May 11, 1962 385 

183 Joint Statement Following Discussions With Prime Minister 
Gerhardsen of Norway. May 11, 1962 386 

184 Toasts of the President and Andre Malraux, French Minister 

for Cultural Affairs. May 11, 1962 386 

185 Remarks to Groups Interested in Improving Sales of Agricul- 
tural Products Abroad. May 12, 1962 388 

186 Address in Milwaukee at the Jefferson-Jackson Dinner. 
May 12, 1962 389 

187 Memorandum on Report "The Competition for Quality" by 
the Federal Council for Science and Technology. May 13, 
1962 392 

188 Remarks at Ceremonies Honoring the Teacher of the Year. 
May 14, 1962 393 

XXVI 



List of Items 

Page 

189 Remarks to Visiting Members of the Mexican Congress. 
May 14, 1962 393 

190 Remarks by Telephone to the Mayors' Conference at Miami 
Beach. May 14, 1962 394 

191 Statement by the President on the Postponement of a Visit 

by the President of the Philippines. May 15, 1962 395 

192 Statement by the President Announcing the Dispatch of 
Additional U.S. Forces to Thailand. May 15, 1962 396 

193 Letter to the President of the Senate and to the Speaker of 
the House Transmitting a Proposed Senior Citizens Act. 
May 15, 1962 396 

194 Remarks to Members of the Committee for Economic Devel- 
opment. May 16, 1962 397 

195 Letter to the President of the Senate and to the Speaker of 
the House on Transfer of Surplus Federal Lands to State 
and Local Bodies. May 16, 1962 398 

196 Letter to the Senior U.S. Adviser to the South Pacific Com- 
mission. May 17, 1962 399 

197 Remarks to Participants in the World Food Forum. May 17, 
1962 400 

198 The President's News Conference of May 17, 1962 400 

199 Address Before the Conference on Trade Policy. May 17, 
1962 408 

200 Remarks in New York City at the Dedication of the Penn 
Station South Urban Renewal Project. May 19, 1962 412 

201 Remarks in Response to New York's Birthday Salute to the 
President. May 19, 1962 414 

202 Address at a New York Rally in Support of the President's 
Program of Medical Care for the Aged. May 20, 1962 * 416 

XXVII 



List of hems 

Page 

203 Remarks to Members of the White House Conference on 
National Economic Issues. May 21, 1962 420 

204 Statement by the President on the Arbitration of the Pan 
American Airways Labor Dispute. May 21, 1962 423 

205 Remarks to Participants in the Campaign Conference for 
Democratic Women. May 22, 1962 424 

206 Remarks of Welcome to President and Mrs. Houphouet- 
Boigny of the Ivory Coast at the Washington National Air- 
port. May 22, 1962 425 

207 Toasts of the President and President Houphouet-Boigny. 
May 22, 1962 427 

208 Remarks to State Directors of the Selective Service System. 
May 23, 1962 428 

209 Letter to the President of the Senate and to the Speaker of 
the House Concerning Research Grants to Colleges and 
Universities. May 23, 1962 429 

210 The President's New^s Conference of May 23, 1962 431 

211 Remarks at the Cornerstone-Laying Ceremonies of the Ray- 
burn House OfEce Building. May 24, 1962 437 

212 Joint Statement Following Discussions With the President 

of the Ivory Coast. May 24, 1962 438 

213 Telephone Conversation With Astronaut Scott Carpenter 
Following His Orbital Flight. May 24, 1962 439 

214 Statement by the President Upon Signing Bill Revising Tariff 
Classifications. May 25, 1962 439 

215 Letter to Secretary Goldberg Upon Receiving His Report on 
the Federal Employee-Management Relations Program. 
May 25, 1962 440 

XXVIII 



List of hems 

Page 

2i6 Remarks to the White House Conference on Conservation. 

May 25, 1962 441 

217 Remarks to Members of the National Council of Senior 
Citizens. May 26, 1962 443 

218 Statement by the President Announcing a Forthcoming 
White House Conference on Narcotics. May 29, 1962 443 

219 Letter to the President of the Senate and to the Speaker of 
the House Transmitting Bills To Carry out Recommenda- 
tions of the Commission on Campaign Costs. May 29, 1962 444 

220 Remarks Upon Receiving Report of the President's Com- 
mittee on Juvenile Delinquency and Youth Crime. May 

31, 1962 447 

221 Memorandum Concerning Improvements in Federal Office 
Space and the Redevelopment of Pennsylvania Avenue. 
June 1, 1962 448 

222 Letter to the President of the American Medical Association. 

' June 5, 1962 449 

223 Remarks of Welcome to Astronaut and Mrs. Scott Carpenter. 
June 5, 1962 450 

224 Remarks of Welcome to Archbishop Makarios, President of 
the Republic of Cyprus, at the Washington National Air- 
port. June 5, 1962 450 

225 Toasts of the President and Archbishop Makarios. June 5, 
1962 451 

f 

226 Remarks at West Point to the Graduating Class of the U.S. 
Military Academy. June 6, 1962 452 

227 Joint Statement Following Discussions With the President 

of the Republic of Cyprus. June 6, 1962 455 

XXIX 



List of Items 

Page 

Z2% Remarks Upon Presenting the Dr. Thomas Dooley Medal to 

His Mother. June 7, 1962 456 

229 The President's News Conference of June 7, 1962 456 

230 Remarks to Members of the Brookings Institution's PubUc 
PoUcy Conference for Business Executives. June 7, 1962 464 

231 Remarks With the Attorney General Upon Presenting the 
Young American Medals. June 8, 1962 465 

232 Remarks to a Group of Overseas Mission Directors of the 
Agency for International Development. June 8, 1962 467 

233 Remarks at a Dinner Honoring Matthew McCloskey Upon 

His Appointment as Ambassador to Ireland. June 9, 1962 4^ 

234 Commencement Address at Yale University. June 11, 1962 470 

235 Remarks of Welcome to President Chiari of Panama at the 
Washington National Airport. June 12, 1962 476 

236 Remarks Upon Presenting Certificates to Graduates of the 
Capitol Page School. June 12, 1962 477 

237 Message to the Congress Transmitting the Final Report on 

the Mutual Security Program. June 12, 1962 477 

238 Toasts of the President and President Chiari of Panama. 
June 12, 1962 478 

239 Message to Chairman Khrushchev Following the Formation 

of a Coalition Government in Laos. June 13, 1962 479 

« 

240 Remarks Upon Signing Bill for Construction of the San 
Juan-Chama and Navajo Projects. June 13, 1962 480 

241 Telegram to Senator Johnston Following His Victory in the 
South Carolina Primary. June 13, 1962 480 

XXX 



List of Items 

Page 

242 Joint Statement Following Discussions With President 
Chiari of Panama. June 13, 1962 481 

243 Remarks at a Meeting With the Headquarters Staff of the 
Peace Corps. June 14, 1962 482 

244 Statement by the President Upon Receiving Report of the 
Missile Sites Labor Commission. June 14, 1962 488 

245 The President's News Conference of June 14, 1962 489 

246 Letter to the Chairman, Commission on Civil Rights, on 
Plans for Observing the Centennial of the Emancipation 
Proclamation. June 15, 1962. 497 

247 Letter to the Attorney General Directing Him To Petition 
for an Injunction in the Republic Aviation Corporation 
Strike. June 15, 1962 497 

248 Joint Statement Following Discussions With Deputy Prime 
Minister Marshall of New Zealand. June 15, 1962- 498 

249 Message to the President of the Republic of Cyprus on His 
Departure From the United States. June 17, 1962 499 

250 Remarks of Welcome to Participants in the Summer Intern 
Program for College Students. June 20, 1962 499 

251 Joint Statement Following Discussions With Prime Minister 
Menzies of Australia. June 20, 1962 502 

252 Remarks of Welcome to the Graduating Class of the Glen 
Lake, Michigan, High School. June 21, 1962 503 

253 Statement by the President on the Settlement of the Trans 
World Airlines Labor Dispute. June 21, 1962 504 

254 Remarks to Student Volunteers Participating in Operation 
Crossroads Africa. June 22, 1962 504 

XXXI 



List of hems 

Page 

255 Remarks to Participants in the Signing of Equal Opportunity 
Agreements. June 22, 1962 505 

256 Statement by the President on the Dispute Between the 
FHght Engineers and Eastern and Pan American World 
Airlines. June 23, 1962 507 

257 Letter to the Chairman of the Committee on Equal Oppor- 
tunity in the Armed Forces. June 24, 1962 508 

258 Toasts of the President and President-Elect Valencia of 
Colombia. June 25, 1962 508 

259 The President's News Conference of June 27, 1962 509 

260 Remarks Upon Opening an Exhibit of President Franklin 

D. Roosevelt's Naval Prints. June 27, 1962 517 

261 Statement by the President Upon Signing the Migration and 
Refugee Assistance Act. June 28, 1962 518 

262 Remarks at the Presentation to President and Mrs. Kennedy 

of Copies of a New White House Guide Book. June 28, 1962 519 

263 Remarks Upon Arrival at the Airport in Mexico City. 
June 29, 1962 519 

264 Address by the President at a Luncheon Given in His Honor 

by President Lopez Mateos. June 29, 1962 520 

265 Remarks at a Civic Ceremony at the Municipal Palace, 
Mexico City. June 29, 1962 522 

266 Message to King Mwami Mwambutsa IV on the Occasion 

of the Independence of Burundi. June 30, 1962 523 

267 Message to President Kayibanda on the Occasion of the In- 
dependence of Rwanda. June 30, 1962 524 

268 Statement by the President on the Signing of an Agricultural 
Agreement With Mexico. June 30, 1962 524 

XXXII 



List of Items 

Page 

269 Remarks at the Unidad Independencia Housing Project in 
Mexico City. June 30, 1962 525 

270 Remarks at an Independence Day Celebration With the 
American Community in Mexico City. June 30, 1962 526 

271 Remarks at a Luncheon Given in Honor of President Lopez 
Mateos. June 30, 1962 527 

272 Remarks to the Staff at the American Embassy in Mexico 
City. June 30, 1962 528 

273 Joint Statement Following Discussions With President 
Lopez Mateos. June 30, 1962 529 

274 Remarks at the Dedication of the Restored Mantelpiece in 

the State Dining Room of the White House. July 2, 1962 531 

275 Excerpts From Address at a Meeting of the American 
Foreign Service Association. July 2, 1962 532 

276 Remarks to Members of a Special Seminar of the Foreign 
Service Institute. July 3, 1962 535 

277 Statement by the President on the Occasion of Algerian 
Independence. July 3, 1962 536 

278 Address at Independence Hall, Philadelphia. July 4, 1962 537 

279 The President's News Conference of July 5, 1962 539 

280 Letter to David Rockefeller on the Balance of Payments 
Question. July 6, 1962 547 

281 Statement by the President on the Death of William Faulk- 
ner. July 6, 1962 550 

282 Statement by the President Concerning a Cost Reduction 
Program in the Defense Department. July 8, 1962 550 

283 Statement by the President in Response to a Report by the 
Council on Youth Fitness. July 9, 1962 551 

715-405 0—64 3 XXXHI 



List of Items 

Page 

284 Remarks to a Group of American Field Service Students. 
July II, 1962 552 

285 Statement by the President on the Telstar Communications 
SateUite. July 11, 1962 553 

286 Statement by the President on the New Tax Depreciation 
Schedules. July 12, 1962 553 

287 Remarks at the Evening Parade FoUow^ing an Inspection of 

the Marine Barracks. July 12, 1962 554 

288 Letter Accepting Resignation of Abraham RibicofT as Sec- 
retary of Health, Education, and Welfare. July 13, 1962 555 

289 Letter to the Chairman, Joint Committee on Atomic Energy, 
Concerning Use of By-Product Steam From the Hanford 
Nuclear Reactor. July 14, 1962 557 

290 Statement by the President on the Resumption of the Geneva 
Disarmament Negotiations. July 15, 1962 557 

291 Article by the President: The Vigor We Need. July 16, 
1962 558 

292 Statement by the President on the Defeat of the Medical 
Care Bill. July 17, 1962 560 

293 Letter Accepting Resignation of George McGovern as 
Director of the Food for Peace Program. July 18, 1962 561 

294 Remarks Upon Presenting the Collier Trophy to Four X-15 
Pilots. July 18, 1962 562 

295 Letter Accepting Resignation of General Norstad as Supreme 
Commander of United States and Allied Forces in Europe. 
July 19, 1962 563 

296 Remarks at a Meeting With the Consumers' Advisory 
Council. July 19, 1962 563 

XXXIV 



List of Items 

Page 

297 Statement by the President Upon Signing Bill Accelerating 
the Development of the Pacific Islands Trust Territory. 
July 20, 1962 564 

298 Telegram to Union and Management Officials Concerning 
a Threatened Strike in the Aerospace Industry. July 21, 
1962 565 

299 Remarks of Welcome to President Arosemena of Ecuador 

at the Washington National Airport. July 23, 1962 566 

300 Toast of the President at a Luncheon in Honor of President 
Arosemena. July 23, 1962 567 

301 Statement by the President on the Signing of Agreements To 
End the Conflict in Laos. July 23, 1962 568 

302 The President's News Conference of July 23, 1962 568 

303 Joint Statement Following Discussions With the President 

of Ecuador. July 24, 1962 576 

304 Memorandum on Equal Opportunity for Women in the 
Federal Service. July 24, 1962 578 

305 Message to Governor Muiioz Marin on the loth Anniversary 

of the Commonwealth of Puerto Rico. July 25, 1962 579 

306 Statement by the President Upon Approving the Public 
Welfare Amendments Bill. July 26, 1962 580 

307 White House Statement on a Program of Assistance to the 
Lumber Industry. July 26, 1962 580 

308 Toasts of the President and Prince Souvanna Phouma, Prime 
Minister of Laos. July 27, 1962 581 

309 Letters to the Secretaries of the Military Departments Com- 
mending Reservists on the Eve of Their Release. July 30, 
1962 582 

XXXV 



List of Items 

Page 

310 Remarks to the Brazilian Ambassador and a Group of 
Brazilian Students. July 31, 1962 584 

311 Remarks at the Swearing In of Anthony J. Celebrezze as 
Secretary of Health, Education, and Welfare. July 31, 1962 587 

312 Joint Statement Following Discussions With Prince Sou- 
vanna Phouma, Prime Minister of Laos. July 31, 1962 587 

313 Letter to the President of the Senate and to the Speaker of 
the House Transmitting Report of the U.S. Study Commis- 
sion — ^Texas. August i, 1962 588 

314 Remarks Upon Signing the Foreign Assistance Act. 
August 1, 1962 589 

315 Statement by the President on the Philippines War Damage 
Bill. August I, 1962 590 

316 The President's News Conference of August i, 1962 590 

317 Remarks to a Group of Alaskan Indian and Eskimo Elec- 
tronics Trainees. August 2, 1962 598 

318 Statement by the President on the Food Stamp Program. 
August 2, 1962 599 

319 Message to the Congress Transmitting i6th Annual Report 

on U.S. Participation in the United Nations. August 2, 1962 599 

320 Letter to the Chairmen of the Senate and House Appropri- 
ations Committees on Civil Defense. August 3, 1962 601 

321 Letter to the Chairman, Senate Committee on the Judiciary, 

on the Need for Safer Drugs. August 5, 1962 603 

322 Remarks at the White House Concert by the National High 
School Symphony Orchestra. August 6, 1962 603 

323 Remarks Upon Presenting the President's Awards for Dis- 
tinguished Federal Civilian Service. August 7, 1962 604 

XXXVI 



List of hems 

Page 

324 Remarks to Students From Latin America and the Caribbean 
Attending the Institute for Free Trade Union Development. 
August 8, 1962 607 

325 Remarks to a Group of Peace Corps Trainees. August 9, 
1962 608 

326 Remarks in Brunswick, Maine, at the Navy Summer 
Festival. August 10, 1962 609 

327 Statement by the President Upon Signing the Work Hours 
Standards Act. August 13, 1962 610 

328 Radio and Television Report to the American People on the 
State of the National Economy. August 13, 1962 611 

329 Remarks to a Representative Beneficiary of the Federal 
Vocational Rehabilitation Program. August 14, 1962 617 

330 Remarks Aboard the Coast Guard Training Barque Eagle. 
August 15, 1962 618 

331 Remarks to Representatives of American Indian Tribes. 
August 15, 1962 619 

332 Remarks Upon Signing Bill Authorizing the Fryingpan- 
Arkansas Project. August 16, 1962 620 

333 Statement by the President Upon Signing Bill Authorizing 
the Mann Creek Federal Reclamation Project, Idaho. 
August 16, 1962 621 

334 Message to President Sukarno on the 17th Anniversary of 
Indonesian Independence. August 17, 1962 621 

335 Remarks at the Dedication of the Oahe Dam, Pierre, 
South Dakota. August 17, 1962 621 

336 Remarks in Pueblo, Colorado, Following Approval of the 
Fryingpan-Arkansas Project. August 17, 1962 625 

xxxvn 



List of Items 

Page 

337 Remarks in Los Banos, California, at the Ground-Breaking 
Ceremonies for the San Luis Dam. August i8, 1962 627 

338 Remarks at the Air Terminal in Fresno, California, After 
Inspecting Western Conservation Projects. August 18, 1962 630 

339 Remarks to Vice President Johnson on His Departure for 
Southern Europe and the Near East. August 22, 1962 631 

340 The President's News Conference of August 22, 1962 631 

341 Remarks to a Group of Fulbright Exchange Teachers From 
Abroad. August 23, 1962 640 

342 Statement by the President Upon Signing Order Removing 
Restriction on Entry Into Guam and the Pacific Islands Trust 
Territory. August 23, 1962 640 

343 Address by Telephone to the Convention of the American 
Veterans of World War II. August 23, 1962 641 

344 Letter to Robert Troutman, Jr., Upon Receiving Report 
"Plans for Progress — One Year's Accomplishments" of the 
Committee on Equal Employment Opportunity. August 23, 
1962 642 

345 Letter to Secretary Goldberg in Response to His Report on 

the Mexican Farm Labor Program. August 23, 1962 642 

346 Remarks by Telephone to the Midw^estern Democratic Con- 
ference at French Lick, Indiana. August 24, 1962 643 

347 Letter to Mrs. Eleanor Roosevelt on Receiving Report by the 
Commission on the Status of Women. August 26, 1962 644 

348 Joint Statement With Prime Minister Macmillan on Nuclear 
Testing. August 27, 1962 644 

349 Farew^ell Remarks to Participants in the Summer Intern 
Program for College Students. August 28, 1962 645 

XXXVIII 



List of Items 

Page 

350 Remarks to Members of the Executive Committee of Ameri- 
can Heritage Foundation. August 28, 1962 647 

351 Remarks to a Group of Junior Red Cross Representatives 
From Abroad. August 29, 1962 648 

352 The President's News Conference of August 29, 1962 648 

353 Letter to Justice Frankfurter Upon His Retirement From 

the Supreme Court. August 29, 1962 656 

354 Remarks to a Group of Peace Corps Volunteers. August 30, 
1962 657 

355 Remarks Upon Signing the Communications SateUite Act. 
August 31, 1962 657 

356 Remarks at the Swearing In of New Members of the Atomic 
Energy Commission. August 31, 1962 658 

357 Letter to Senate and House Minority Leaders on U.S. In- 
formation Activities Relating to Berlin. September i, 1962 658 

358 Statement by the President Announcing an International 
Conference on ''Human Skills in the Decade of Develop- 
ment." September 3, 1962 659 

359 Statement by the President: Labor Day, 1962. September 3, 
1962 660 

360 Labor Day Message to the Youth of the Nation. September 

3> 1962 661 

361 Remarks to the Members of the Schola Cantorum of the 
•University of Arkansas. September 4, 1962 662 

362 Remarks Upon Signing Bill Placing the Frederick Douglass 
Home in the National Capital Park System. September 5, 
1962 663 

363 Remarks to Participants in the Experiment in International 
Living Program. September 5, 1962 663 

XXXIX 



Ust of Items 



Page 



364 Message to the Shah Following an Earthquake in Iran. 
September 6, 1962 664 

365 Statement by the President on the Differential in Cotton 
Costs Between Domestic and Foreign Textile Producers. 
September 6, 1962 664 

366 Letter to the President of the Senate and to the Speaker of 
the House Transmitting Bill Authorizing Mobilization of 

the Ready Reserve. September 7, 1962 665 

367 Statement by the President Upon Signing Bill To Increase 
Veterans' Disability Compensation. September 7, 1962 665 

368 Message to the Conference of African Chiefs of State Meeting 

at Libreville, Republic of Gabon. September 10, 1962 666 

369 Statement by the President Upon Receiving Report on the 
Labor Dispute in the Aerospace Industry. September 11, 
1962 666 

370 Remarks to the Staff at the NASA Launch Operations 
Center, Cape Canaveral. September 11, 1962 667 

371 Remarks to Allied Students at the Army Guided Missile 
School, Huntsville, Alabama. September 11, 1962 667 

372 Remarks on Arrival at the International Airport in Houston. 
September 11, 1962 667 

373 Address at Rice University in Houston on the Nation's 
Space Effort. September 12, 1962 668 

374 Remarks at the NASA Manned Spacecraft Center in 
Houston. September 12, 1962 671 

375 Remarks in St. Louis to Employees of the McDonnell Air- 
craft Corporation. September 12, 1962 672 

376 Telegram to Officials of the Boeing Company and the Inter- 
national Association of Machinists Concerning a Threatened 
Strike. September 13, 1962 672 

XL 



Ust of Items 

Page 

377 Remarks Upon Signing Bill To Establish the Point Reyes 
National Seashore, California. September 13, 1962 673 

378 The President's News Conference of September 13, 1962 674 

379 Statement by the President: The Jewish High Holy Days. 
September 14, 1962 682 

380 Remarks Upon Signing the Public Works Acceleration Act. 
September 14, 1962 682 

381 Statement by the President on the Passage by the House of 
Representatives of the U.N. Bond Purchase Bill. September 

14, 1962 683 

382 Statement by the President on the Passage by the House of 
Representatives of a Bill Providing for the Hanford Reactor. 
September 14, 1962 683 

383 Remarks in Newport at the Australian Ambassador's Dinner 

for the America's Cup Crews. September 14, 1962 683 

384 Remarks Aboard the Destroyer Joseph P. Kennedy, Jr., off 
Newport. September 15, 1962 685 

385 Remarks With David McDonald Recorded for the United 
Steelworkers Convention at Miami Beach. September 17, 
1962 685 

386 Telegram to Management and Labor Leaders Concerned in 
the Chicago and Northwestern Railway Strike. September 

i7> 1962 687 

387 Message to the Editor on the 40th Anniversary of Foreign 
Affairs. September 18, 1962 689 

388 Joint Statement Following Discussions With President 
Kayibanda of the Republic of Rwanda. September 19, 1962 689 

389 Statement by the President on Foreign Aid. September 19, 
1962 689 

XLI 



List of Items 

Page 

390 Statement by the President Announcing an Agreement in 

the Aerospace Industry Labor Dispute. September 19, 1962 690 

391 Remarks Upon Signing Bill To Establish the Delaware River 

and Bay Authority. September 20, 1962 690 

392 Remarks to the Board of Governors of the World Bank and 

the International Monetary Fund. September 20, 1962 691 

393 Letter to Secretary Goldberg Upon His Resignation To 
Accept Appointment to the Supreme Court. September 20, 
1962 694 

394 Remarks on Arrival at the Harrisburg-York State Airport, 
Harrisburg, Pennsylvania. September 20, 1962 695 

395 Remarks in Harrisburg at a Democratic State Finance Com- 
mittee Dinner. September 20, 1962 695 

396 Remarks by Telephone to a Dinner Meeting of the Ohio 
State Democratic Convention in Columbus. September 21, 
1962 698 

397 Remarks Recorded for an Oklahoma City Gathering in 
Honor of Representative Carl Albert. September 21, 1962 700 

398 Remarks Televised to the National Convention of the Air 
Force Association Meeting in Las Vegas, Nevada. Septem- 
ber 21, 1962 701 

399 Remarks Recorded for the Ceremony at the Lincoln Me- 
morial Commemorating the Centennial of the Emancipation 
Proclamation. September 22, 1962 702 

400 Broadcast Remarks on Trade and Foreign Aid. September 

23, 1962 703 

401 Remarks Recorded for a Dinner in Cleveland Honoring 
Secretary Celebrezze. September 23, 1962 704 

402 Remarks of Welcome to President Ayub Khan of Pakistan 

at Quonset Point, Rhode Island. September 24, 1962 704 

XLII 



Ust of Items 

Page 

403 Joint Statement Following an Informal Meeting in Newport 
With President Ayub Khan. September 24, 1962 705 

404 Letter to President Ayub Khan on Problems of Agricultural 
Productivity in Pakistan. September 24, 1962 705 

405 Remarks at the Swearing In of Willard Wirtz as Secretary 

of Labor. September 25, 1962 706 

406 Remarks to Members of the Ballet Folklorico of Mexico. 
September 25, 1962 706 

407 Remarks Upon Accepting a Painting of the Battle of Bunker 
Hill. September 25, 1962 707 

408 Remarks Upon Signing the Atomic Energy Commission Au- 
thorization Bill. September 26, 1962 708 

409 Remarks Upon Signing a Resolution Providing for a Medal 

To Commemorate Sam Rayburn. September 26, 1962 708 

410 The President's Special News Conference With Business 
Editors and Publishers. September 26, 1962 709 

411 Remarks to the White House Conference on Narcotic and 
Drug Abuse. September 27, 1962 716 

412 Statement by the President to Members of the New National 
Advisory Committee on Manpower Development and Train- 
ing. September 27, 1962 719 

413 Remarks Upon Signing the Food and Agriculture Act of 
1962. September 27, 1962 719 

414 Remarks at the Wheeling Stadium, Wheeling, West Vir- 
ginia. September 27, 1962 720 

415 Message to Prime Minister Muhirwa on the Forthcoming 
Celebration of the Independence of Burundi. September 27, 
1962 724 

XLIII 



List of Items 

Page 

416 Remarks at the Presentation of the Distinguished Service 
Medal to Gen. George H. Decker. September 28, 1962 724 

417 Remarks Upon Signing Bill Providing for the Padre Island 
National Seashore. September 28, 1962 725 

418 Statement by the President on the Signing of the Interna- 
tional Coffee Agreement. September 28, 1962 725 

419 Joint Statement FoUow^ing Discussions With the Foreign 
Secretary of the United Kingdom. September 30, 1962 726 

420 Radio and Television Report to the Nation on the Situation 

at the University of Mississippi. September 30, 1962 726 

421 Statement by the President Upon Creating a Board of In- 
quiry in the Longshoremen's Strike. October i, 1962 728 

422 Remarks Upon Presenting the Distinguished Service Medal 

to Gen. Lyman L. Lemnitzer. October i, 1962 729 

423 Remarks at the Sw^earing In of Gen. Maxw^ell D. Taylor as 
Chairman of the Joint Chiefs of Staff. October i, 1962 730 

424 Remarks Upon Signing the United Nations Loan Bill. 
October 2, 1962 731 

425 Remarks Upon Signing Bill Amending the Soil Conserva- 
tion and Domestic Allotment Act. October 2, 1962 731 

426 Statement by the President on the Orbital Flight of Astronaut 
Water Schirra. October 3, 1962 732 

427 Telephone Conversation With Astronaut Walter Schirra 
Follow^ing His Flight. October 3, 1962 732 

428 Statement by the President on the Longshoremen's Strike. 
October 4, 1962 732 

429 Joint Statement Following Discussions With Crown Prince 
Faysal of Saudi Arabia. October 5, 1962 733 

XLIV 



List of hems 

Page 

430 Message to Pope John XXIII on the Occasion of the Opening 

of the Second Vatican Council. October 5, 1962 733 

431 Remarks Upon Arrival at Greater Cincinnati Airport, 
Erlanger, Kentucky. October 5, 1962 734 

432 Remarks at Fountain Square in Cincinnati. October 5, 1962 735 

433 Remarks Upon Arrival at Metropolitan Airport, Detroit. 
October 5, 1962 737 

434 Statement by the President Upon Signing Bill Relating to 
Suits Against Government Officials. October 5, 1962 738 

435 Reply to Chairman Khrushchev's Message on the Flight of 
Commander Schirra. October 6, 1962 738 

436 Remarks at a Democratic Rally in Detroit. October 6, 1962 738 

437 Remarks at the Municipal Mall in Flint, Michigan. October 

6, 1962 740 

438 Remarks at the Airport in Muskegon, Michigan. October 6, 
1962 742 

439 Remarks at the Hippodrome Arena in St. Paul, Minnesota. 
October 6, 1962 744 

440 Remarks by Telephone to a Democratic Rally at St. Cloud, 
Minnesota. October 7, 1962 748 

441 Message to Prime Minister Obote on the Occasion of the 
Independence of Uganda. October 8, 1962 750 

442 Remarks Upon Signing the Drug Reform Bill. October 

10, 1962 751 

443 Remarks to a Group of United States Attorneys. October 

10, 1962 751 

444 Remarks of Welcome to President Sekou Toure of Guinea 

at the Washington National Airport. October 10, 1962 752 

XLV 



List of Items 

Page 

445 Telegram to the Governor of Mississippi Tendering Federal 
Assistance in Removing a Sunken Chlorine Barge. October 

10, 1962 753 

446 Remarks in Baltimore at the Fifth Regiment Armory. 
October 10, 1962 754 

447 Remarks Upon Signing the Postal Service and Federal 
Employees Salary Act of 1962. October 11, 1962 756 

448 Memorandum on Manpow^er Controls and Utilization in the 
Executive Branch. October 11, 1962 757 

449 Remarks Upon Signing the Trade Expansion Act. October 

II, 1962 759 

450 Remarks at a Columbus Day Celebration in Newark, Nevs^ 
Jersey. October 12, 1962 760 

451 Remarks at a Rally in Aliquippa, Pennsylvania. October 

12, 1962 761 

452 Remarks at Fitzgerald Field House, University of Pittsburgh. 
October 12, 1962 762 

453 Remarks at City Hall, McKeesport, Pennsylvania. October 

13, 1962 766 

454 Remarks at a Rally in Monessen, Pennsylvania. October 

13, 1962 768 

455 Remarks at the Court House, Washington, Pennsylvania. 
October 13, 1962 769 

456 Remarks at the Indianapolis Airport. October 13, 1962 771 

457 Remarks Upon Arrival at Standiford Airport, Louisville, 
Kentucky. October 13, 1962 773 

458 Remarks at the State Fairgrounds in Louisville. October 

13, 1962 774 

XLVI 



List of Items 

Page 

459 Transcript of Interview With William Lawrence Recorded 

for the Program "Politics— '62." October 14, 1962 777 

460 Remarks at the Municipal Airport, Niagara Falls, New 
York. October 14, 1962 781 

461 Remarks at the Pulaski Day Parade, Buffalo, New York. 

October 14, 1962 782 

462 Letter to Senator Pell Concerning Interurban Transporta- 
tion Between Eastern Seaboard Cities. October 15, 1962 783 

463 Message to the Director of NASA Commending Com- 
mander Schirra and the Mercury Team. October 15, 1962 784 

464 Remarks of Welcome to Prime Minister Ben Bella of Algeria 

on the South Lawn at the White House. October 15, 1962 784 

465 Toasts of the President and Prime Minister Ben Bella. Octo- 
ber 15, 1962 785 

466 Joint Statement Following Discussions With Prime Minister 
Ben Bella. October 15, 1962 786 

467 Toasts of the President and Crown Prince Hasan of Libya. 
October 16, 1962 786 

468 Statement by the President Upon Signing the Revenue Act. 
October 16, 1962 787 

469 Statement by the President Upon Signing Bill Modifying 
the Anti-Communist Oath Requirement for Student Loans. 
October 17, 1962 788 

470 Statement by the President Upon Signing Bill Authorizing 
a National Institute of Child Health and Human Develop- 
ment. October 17, 1962 788 

471 Joint Statement Following Discussions With the Crown 
Prince of Libya. October 17, 1962 789 

XLVII 



List of Items 

Page 

472 Remarks at the Bridgeport Municipal Airport, Stratford, 
Connecticut. October 17, 1962 789 

473 Remarks on the New Haven Green. October 17, 1962 791 

474 Remarks on the Green in Waterbury, Connecticut. October 

17, 1962 792 

475 Remarks on Presenting the Harmon Trophies. October 18, 
1962 793 

476 Letter to the Incorporators of the Communications SatelUte 
Corporation. October 18, 1962 794 

477 Message to the Prime Minister of Canada on International 
Trade. October 19, 1962 795 

478 Statement by the President Upon Signing Bill Relating to 

the World Food Congress. October 19, 1962 796 

479 Memorandum of Disapproval of Bill Concerning Indecent 
Publications in the District of Columbia. October 19, 1962 796 

480 Remarks in the Public Square, Cleveland, Ohio. October 

19, 1962 797 

481 Remarks at the State Fairgrounds, Springfield, Illinois. 
October 19, 1962 798 

482 Remarks in Chicago to Democratic Precinct Workers. 
October 19, 1962 801 

483 Remarks at a Dinner of the Democratic Party of Cook 
County. October 19, 1962 802 

484 Memorandum of Disapproval of Bill To Amend the Tariff 
Classification of Lightv^eight Bicycles. October 22, 1962 805 

485 Radio and Television Report to the American People on the 
Soviet Arms Buildup in Cuba. October 22, 1962 806 

XLVIII 



List of Items 

Page 

486 Proclamation 3504: Interdiction of the Delivery of Offensive 
Weapons to Cuba. October 23, 1962 809 

487 Letter to Secretary Hodges Allocating Funds for the Accel- 
eration of Public Works. October 24, 1962 811 

488 Message to the Acting Secretary General of the United 
Nations. October 25, 1962 811 

489 White House Statement on the Soviet Missile Sites in Cuba. 
October 26, 1962 812 

490 Message to President Goulart Requesting Postponement of 

a Scheduled Visit to Brazil. October 26, 1962 812 

491 White House Statement on Soviet Proposals Relating to In- 
ternational Security. October 27, 1962 813 

492 Message to Chairman Khrushchev Calling for Removal of 
Soviet Missiles From Cuba. October 27, 1962 813 

493 Message in Reply to a Broadcast by Chairman Khrushchev 

on the Cuban Crisis. October 28, 1962 814 

494 Statement by the President FoUow^ing the Soviet Decision 

To Withdraw^ Missiles From Cuba. October 28, 1962 815 

495 Message to the Emergency Conference on Pacific Northw^est 
Timber Damage. October 29, 1962 816 

496 Remarks to Students and Members of the Faculty of the 
Brazilian Escola Superior de Guerra. October 30, 1962 816 

497 Remarks at the Graduation Exercises of the FBI National 
Academy. October 31, 1962 817 

498 Statement Commending Judge Philip C. Jessup, Member of 

the International Court of Justice. November i, 1962 818 

499 Remarks at the Signing of a Contract To Aid Electrification 

of Underdeveloped Countries. November i, 1962 818 

715-405 O— 64 4 XLIX 



List of hems 

Page 

500 Message to the President of the Inter-ParUamentary Council. 
November i, 1962 820 

501 Radio and Television Remarks on the Dismantling of Soviet 
Missile Bases in Cuba. November 2, 1962 821 

502 Statement by the President Urging Citizens To Vote on 
Election Day. November 3, 1962 821 

503 Statement by the President on the Conclusion of Atmos- 
pheric Nuclear Tests in the Pacific. November 4, 1962 821 

504 Proclamation 3505: Thanksgiving Day. November 7, 1962 822 

505 Statement by the President on the Death of Mrs. Eleanor 
Roosevelt. November 7, 1962 823 

506 Remarks of Welcome at the White House to Chancellor 
Adenauer of Germany. November 14, 1962 823 

507 Toasts of the President and Chancellor Adenauer. Novem- 
ber 14, 1962 824 

508 Joint Statement Following Discussions With Chancellor 
Adenauer. November 15, 1962 825 

509 Remarks at the Signing of a Joint Statement on Fair Em- 
ployment Practices. November 15, 1962 826 

510 Statement by the President on Announcing the Appointment 
of Christian Herter as Special U.S. Representative for Trade 
Negotiations. November 15, 1962 827 

511 Message to Chancellor Adenauer Following His Visit. No- 
vember 17, 1962 828 

512 Remarks at the Dedication of the Dulles International Air- 
port, Chantilly, Virginia. November 17, 1962 828 

513 Remarks to Members of the First Inter-American Sym- 
posium. November 19, 1962 829 



List of Items 

Page 

514 Message to Mrs. Niels Bohr Upon the Death of Her Husband. 
November 20, 1962 830 

515 The President's News Conference of November 20, 1962 830 

516 Remarks With the Secretary of Labor at the Signing of 
Contracts Between Trans World AirUnes and the Pilots and 
Flight Engineers Unions. November 21, 1962 838 

517 Statement by the President Announcing Accelerated Pay- 
ment of National Service Life Insurance Dividends. No- 
vember 22, 1962 838 

518 Statement by the President on the Reconvening of the Geneva 
Disarmament Conference. November 26, 1962 839 

519 Remarks at Fort Stewart, Georgia, to Members of the First 
Armored Division. November 26, 1962 839 

520 Remarks at Homestead Air Force Base, Florida, Upon Pre- 
senting Unit Awards. November 26, 1962 840 

521 Remarks in Key West Upon Presenting Unit Citations 

at the Boca Chica Naval Air Station. November 26, 1962 841 

522 Remarks of Welcome at the White House to the Prime 
Minister of the Somali Republic. November 27, 1962 841 

523 Toasts of the President and Prime Minister Abdirascid. 
November 27, 1962 842 

524 Remarks to a Group of Scientists on the 20th Anniversary 
of Dr. Enrico Fermi's Nuclear Experiment. November 

27, 1962 843 

525 Memorandum on the Year 2000 Plan for the National Cap- 
ital Region. November 27, 1962 844 

526 Joint Statement Following Discussions With the Prime 
Minister of the Somali Republic. November 28, 1962 845 

LI 



Ust of Items 



Page 



527 Remarks at a Closed-Circuit Television Broadcast on Behalf 

of the National Cultural Center. November 29, 1962 846 

528 Remarks of Welcome at the White House to President 
Villeda of Honduras. November 30, 1962 847 

529 Joint Statement Following Discussions With President 
Villeda. November 30, 1962 848 

530 Remarks Upon Presenting the Enrico Fermi Aw^ard to Dr. 
Edward Teller. December 3, 1962 849 

531 Remarks at a Luncheon in Honor of a Japanese Trade Dele- 
gation. December 3, 1962 850 

532 Remarks Concerning the Part Played by Radio Stations in 

the Cuban Crisis. December 4, 1962 851 

533 Remarks to Recipients of the Rockefeller Public Service 
Awards. December 6, 1962 852 

534 Remarks at the First International Awards Dinner of the 
Joseph P. Kennedy, Jr., Foundation. December 6, 1962 853 

535 Remarks in Omaha Upon Presenting a Special Flight Safety 
Plaque to the Strategic Air Command. December 7, 1962 854 

536 Remarks Upon Arrival at Santa Fe, New Mexico. Decem- 
ber 7, 1962 855 

537 Remarks at the High School Football Stadium, Los Alamos, 
New Mexico. December 7, 1962 855 

538 Remarks Upon Arrival at the Kirtland Air Force Base in 
Albuquerque. December 7, 1962 856 

539 Message to President Nyerere Upon the Establishment of 

the Republic of Tanganyika. December 8, 1962 857 

540 Remarks at the Swearing In of Francis Keppel as Commis- 
sioner of Education. December 10, 1962 857 

LII 



List of Items 

Page 

541 Remarks at the Swearing In of Christian Herter as Special 
Representative for Trade Negotiations. December 10, 1962 858 

542 Remarks of Welcome at the White House to President 
Alessandri of Chile. December 11, 1962 859 

543 Toasts of the President and President Alessandri. December 

II, 1962 860 

544 Joint Statement Following Discussions With the President 

of Chile. December 12, 1962 862 

545 Filmed Message to the Chicago Convention and Exposition 
of the National Association of Home Builders. December 

12, 1962 864 

546 The President's News Conference of December 12, 1962 866 

547 Statement by the President on the Report of the President's 
Science Advisory Committee, "Meeting Manpower Needs in 
Science and Technology." December 13, 1962 874 

548 Remarks at the Ground-Breaking Ceremonies for the U.S. 
Pavilion, New York World's Fair, December 14, 1962 875 

549 Address and Question and Answer Period at the Economic 
Club of New York. December 14, 1962 875 

550 Remarks at the Pageant of Peace Ceremonies. December 

i7> 1962 888 

551 Television and Radio Interview: "After Two Years— a 
Conversation With the President." December 17, 1962 889 

552 Magazine Article "The Arts in America." December 18, 
1962 904 

553 Exchange of Remarks With Prime Minister Macmillan 
Upon Arriving at Windsor Field in Nassau, the Bahamas. 
December 18, 1962 907 

LIII 



List of Items 

Page 

554 Joint Statement Following Discussions With Prime Minister 
Macmillan — The Nassau Agreement, December 21, 1962 908 

555 Proclamation 351 1: Emancipation Proclamation Centennial. 
December 28, 1962 910 

556 Remarks in Miami at the Presentation of the Flag of the 
Cuban Invasion Brigade. December 29, 1962 911 

557 Partial Transcript of a Background Press Interview at Palm 
Beach. December 31, 1962 913 



LIV 



John F. Kennedy 
1962 



I Exchange of Messages With President Nazim al-Qudsi of the 
Syrian Arab RepubUc on the Occasion of His Inauguration. 
January 4, 1962 



Dear Mr, President: 

On behalf of the government of the 
United States of America, I wish to extend 
my warm congratulations on your inaugu- 
ration as President of the Syrian Arab Re- 
public. The people of the United States, 
who have traditionally held the Syrian 
people in the highest esteem, join with me 
in wishing you and your administration 
well. It is my earnest hope that during the 
exercise of your office we will have close 
official and personal relations looking toward 
the strengthening of ties between our two 
nations. 

John F. Kennedy 



note: President al-Qudsi's reply follows: 

Dear Mr. President: 

I would like to thank you and the people and 
government of the USA for your cordial message 
of congratulations and for the friendly sentiments 
which you were kind enough to express toward the 
people of the SAR on the occasion of my election 
as President of the Republic. I am confident that 
the kinds of friendship which join our two countries 
will be reinforced by the official and personal rela- 
tions to which you referred in your letter. 

I take advantage of the advent of the New Year to 
express to you and to the people and government of 
the USA best wishes for your own happiness and 
for the prosperity of the American people. 

Nazim al-Qudsi 

The messages were released at Palm Beach, Fla. 



2 Message to Chancellor Adenauer on His 86th Birthday. 
January 5, 1962 



Dear Mr. Chancellor: 

On the occasion of your eighty-sixth birth- 
day, I wish to extend to you both my per- 
sonal congratulations and the warmest good 
wishes of the American people. 

As we face together the somber challenges 
and bright opportunities of the New Year 
which lies before us, I earnesdy hope that 



throughout 1962 you will enjoy good health 
and continuing success in all your work. 
Sincerely, 

John F. Kennedy 

[His Excellency, Dr. Konrad Adenauer, Chancellor 
of the Federal Republic of Germany, Bonn] 

note: The message was released at Palm Beach, 
Fla. 



3 Remarks in Columbus at a Birthday Dinner for Governor DiSalle. 
January 6, 1962 



Ladies and gentlemen, Mr. Coleman: 

There is no city in the United States in 
which I get a warmer welcome and less votes 
than Columbus, Ohio! 



Mr. Coleman, Mr, Justice, reverend clergy, 
my colleagues in the House of Representa- 
tives, my two distinguished former col- 
leagues in the Senate of the United States, 
Senator Young and Senator Lausche, who 



have served this State and who have also 
served the United States — ladies and gentle- 
men: 

A hundred years ago, Abraham Lincoln 
stayed up all one night in a telegraphic office, 
watching the results of an essential guber- 
natorial contest in this State, in the darkest 
days of the Civil War. And at the end of 
the night when the Unionist candidate who 
supported Lincoln's policies had finally 
emerged the victor, Lincoln wired, "Glory 



[3] Jan. 6 



Public Papers of the Presidents 



to God in the highest, Ohio has saved the 
Nation." 

Two years ago yesterday, when Governor 
DiSalle was kind enough to endorse my can- 
didacy, I had somewhat similar sentiments 
about Ohio. 

Last year I felt that maybe Ohio had lost 
the Union, but I believe now — 1962 — in the 
State of Ohio, that this State is going to 
elect a Democratic Governor, is going to elect 
in the person of Senator Lausche a Demo- 
cratic Senator, and will elect Democratic 
Congressmen who stand for progress in Ohio 
and the Nation. 

I think that this is a most important occa- 
sion. The President of the United States, as 
Harry Truman has pointed out on many 
occasions, wears many hats, and one of them 
is the hat of the leader of his party. A po- 
litical party is not an end in itself. It is a 
means to an end. Woodrow Wilson said, 
after his great victory in 19 12, "What good is 
the success of a political party unless that 
party is being used by the Nation for a great 
purpose?" 

And it is my conviction that here in this 
State and in the United States at large, the 
Democratic Party has been used by the 
people for a great state and national purpose. 
I come here on the birthday of Governor 
DiSalle. He has rendered singular service — 
before he became the Governor of this 
State — to the people of Ohio, in a number of 
high positions. He has rendered service to 
the people of the State of Ohio. He is a dis- 
tinguished Governor, and to every position 
which he has held, he has brought integrity, 
a sense of community with the people, and a 
recognition that no city, no State, and no 
country can afford to stand still, but must 
move forward. So I am delighted to come 
here tonight. 

The work that he has done in one field 
alone, in mental retardation, is indicative of 
his concern — which must be the concern of 
us all. 

Two months ago, I had two young girls 
come into my office, two sisters — both of 
them had suffered from mental retardation. 



One had been discovered — the second one — 
because of the advance of science, and by 
changing her diet that young lady will live a 
normal, healthful, and useful life. And her 
sister will be sick from now on. That is 
what? — a change of 2 years in the advance of 
science. 

People who say that all the things that had 
to be done were done in the administrations 
of Harry Truman or Franklin Roosevelt or 
Woodrow Wilson are wrong. We in our 
time, in this State and country, face problems 
entirely different, but equally important. 
How glad all of us would be if in the next 
5 years it is possible for the more than 5 
million children who suffered at one time or 
another in their lives from this affliction to be 
cured, as we have cured so many other 
diseases. 

These are the things which interest our 
party. They interest the American people. 
Their responsibilities are upon us. Gover- 
nor DiSalle has recognized them, and what 
he has tried to do in the State of Ohio, we 
are trying to do in the United States of 
America. 

We have not done everything that we 
thought should be done in the campaign of 
i960, but we have done many things. In 
the last 12 months the economy of the United 
States moved ahead by 10 percent, over $40 
billion. Agriculture in this country has had 
the highest income it has had since Korea. 
The United States, at last, is making a deter- 
mined effort in the field of space, where our 
neglect in other years cost us more in pres- 
tige than any failure since 1945. 

This country is committed to progress. 
This administration is committed to prog- 
ress, and I can assure you that in the Con- 
gress of the United States — this year — we are 
going to add programs which will serve our 
people. You may say, and some do, that 
everything should be left alone. I read 
where the Ohio scholarship fund reported 
last year that more than 41,000 of the 78,000 
high school graduates were academically pre- 
pared for college, a record which few other 
States can duplicate, and yet nearly 4,100 of 



John F. Kennedy, 7962 



Jan. 6 [3] 



these young boys and girls were unable to 
go to college because they could not afiford it. 

It costs now $1,650 to put a student in col- 
lege for a year, and yet half the families of 
the United States have incomes of less than 
$5,000 a year. 

In 1970 there will be twice as many boys 
and girls trying to get into the colleges and 
universities of this State, and every other 
State, as in i960. Is this something that we 
should turn our backs on? 

I believe that it is essential that we rec- 
ognize in the State and in the National 
Government our obligation to make it 
possible for any young man or woman of 
talent and motivation to secure an education 
and advance their life and interest. And we 
propose to help them do it. 

American families worry not only about 
educating their children, they also worry 
about how they are going to care for their 
parents, and that is why we are going to 
send again to the Congress of the United 
States — and I believe the Congress of the 
United States will enact this legislation, 
which will permit older people to pay for 
their medical bills under a system of social 
security. 

Medical costs are high enough, but their 
parents have longer illnesses, they spend 
two or three times as long in the hospital, 
they see physicians half again as much as 
people under 65, and the result is a medical 
bill twice as high, which falls in many 
cases on a mother and father who at the same 
time are attempting to educate their chil- 
dren. The parents cannot pay these bills. 
Three-fourths of our older people have in- 
comes of less than $2,000 a year. Only 
one-half of them have any kind of hospital 
insurance, and I believe that this represents 
an opportunity to permit them through the 
Social Security System — ^which was once op- 
posed in the thirties, but which is now a 
blessing — to participate in providing for 
their own security when they are older. 

So all those who say that there is nothing 
left to be done, that we should rest on our 
oars, that the function of the national admin- 



istration and Government is to sit and lie at 
anchor, are wholly wrong. And we do not 
propose to follow their advice. 

We face a difficult and hazardous future, 
but one which I believe is bright with oppor- 
tunity. All of the predictions which the 
Communists made with such assurance years 
ago, very few of them have come to fruition. 
They prophesied that the Western World 
would break asunder, and yet the Western 
World sees the greatest impetus towards 
unity of the Atlantic Community that it has 
had in its history. They prophesied that 
the Communist world would be a great bloc, 
and yet in the last 18 months to 2 years, we 
have seen the beginning of the fragmenta- 
tion of the Communist empire — and East 
Germany and Poland and Hungary are kept 
in it by force — and Albania and Yugoslavia 
and China and the others begin to move 
away. So those who see only hazard and do 
not recognize that on the other side of the 
coin is opportunity are wrong. 

I believe that the future can be bright for 
us. I believe that this administration has 
recognized that to the south, to the east, to 
the west, and above us, there are many things 
still left undone. From 1945 to i960 the 
United States of America gave more assist- 
ance to Yugoslavia than it did to all of Latin 
America combined. This was the forgotten 
area. It was difficult for public officials of 
the United States Government to travel with 
safety in many parts of our own Hemisphere. 
I believe a change has come about, and I 
believe the people of this Hemisphere recog- 
nize an identity of interest, that freedom is 
the handmaiden of abundance, and that 
through working together in the days to 
come this Hemisphere can set an example to 
a watching world. 

So I come to Ohio a year later, and I 
come to express my regard for your distin- 
guished Governor and the Members of Con- 
gress who have assisted on many occasions 
in advancing the interests of this State and 
country. 

And I want to commit myself to you, as I 
did to them, to the progress of this country. 



[S] Jan. 6 



Public Papers of the Presidents 



On the back of your program there is a 
picture of the Seal of the State of Ohio. You 
will see that there is a sun low on the 
horizon. It is my judgment that that is not 
a setting sun but a rising sun, because as the 
State of Ohio says in its great Seal, "With 
God all things are possible." 

Thank you. 



note: The President spoke at the Buckeye Building 
on the Fair Grounds in Columbus, Ohio. In his 
opening remarks he referred to William L. Coleman, 
chairman of the Democratic Executive Committee 
of Ohio, Chief Justice Carl V. Weygandt of the 
Ohio State Supreme Court, the Reverend Reed 
Hagans, of the Good Samaritan Baptist Church in 
Columbus, The Most Reverend Clarence G. Issen- 
mann. Bishop of Columbus, and U.S. Senators 
Stephen M. Young and Frank J. Lausche of Ohio. 



Statement by the President Following a Meeting With General 
Clay on the Berlin Situation. January 7, 1962 



GENERAL CLAY and I have had a most 
useful and satisfactory review of the current 
situation in Berlin and Germany. I have 
been very glad to get his report of the con- 
tinued staunchness of the free people of West 
Berlin, and v^e have talked at length about 
the w^ays and means of sustaining and 
strengthening the life of their great city in 
the future as in the past. 

We have also review^ed the general prob- 
lem of effective handling of possible crisis 



situations, and wc have reached full agree- 
ment on the policy to be foUow^ed during 
these months. 

This meeting is one more vv^ay in w^hich 
Mr. Rusk, General Clay, and I can keep in 
the closest touch, and we continue to be for- 
tunate in having him as the senior American 
in Berlin. 

note: Gen. Lucius D. Clay was serving as the Pres- 
ident's personal representative in Berlin, with the 
rank of Ambassador. 



5 Remarks to the Vienna Choir Boys. 
January 9, 1962 



I WANT to express our great pleasure and 
satisfaction at having this distinguished choir 
here. I think they sang for us v^^hile v^e 
were in Vienna — St. Stephen's Church — and 
wt are delighted to have them here, not only 
because of their own skill but also because it 
reminds us of a beautiful city and a very 
warm welcome. 



So we want you to know we are glad to 
have you at the White House. Thank you. 
Are we going to hear from them? 

note: The President welcomed the boys in the Rose 
Garden. They responded by singing the Callus 
"Haec Dies" and Zoltan Kodaly's "Angels and the 
Shepherds." 



6 Statement by the President on Receiving Report on Automation 
by the Advisory Committee on Labor-Management PoUcy. 
January ii, 1962 



I APPRECIATE greatly the contribution 
this report represents. 

This automation problem is as important 
as any we face. 



We must take advantage of every oppor- 
tunity for technological development. But 
we cannot disregard the human values in- 
volved. 



John F. Kennedy, 7962 



Jan. 



II 



[7] 



Your recommendations properly recognize 
both sides of this problem. I am grateful 
for your help. 

note: The Committee's first report, dated January 
1 1 and entitled "The Benefits and Problems Incident 
to Automation and Other Technological Advances" 
(25 pp., processed), was released with the President's 
statement. It was presented to the President at the 
White House by the Chairman, Secretary of Labor 
Arthur J. Goldberg, and the Vice Chairman, Sec- 
retary of Commerce Luther H. Hodges, accompanied 
by members of the 19-man Committee. (For estab- 
lishment see 1 961 volume, this series, Item 40.) 

The Committee's recommendations cover the fol- 
lowing matters: 

1. Adoption of policies to promote a high rate of 
economic growth and fuller utilization of resources. 

2. Collection and dissemination of information on 
job opportunities and requirements. 

3. Cooperation between Government and private 



organizations to support and improve educational 
facilities. 

4. Acceptance of responsibility by management 
for measures to reduce the impact on workers of 
technological change. 

5. Public and private support for retraining of 
displaced workers, for financial help to such workers 
in periods of unemployment, and for protection of 
their job equities and security. 

6. Improvement of public employment services. 

7. Intensified efforts to end discriminatory em- 
ployment practices. 

8. Advance planning for short-term public works 
projects in possible areas of technological unem- 
ployment. 

9. Consideration of possible monetary and fiscal 
measures, including tax reductions, to stimulate 
business and employment. 

10. Consideration of possible reductions in basic 
work periods. 

Incorporated in the report are dissenting state- 
ments by two of the Committee members. 



Annual Message to the Congress on the State of the Union. 
January ii, 1962 

[ As delivered in person before a joint session ] 



Mr. Vice President, my old colleague from 
Massachusetts and your new Speaker, John 
McCormac\, Members of the 8yth Congress, 
ladies and gentlemen: 

This week we begin anew our joint and 
separate efforts to build the American future. 
But, sadly, we build without a man who 
linked a long past with the present and 
looked strongly to the future. "Mister Sam" 
Rayburn is gone. Neither this House nor 
the Nation is the same without him. 

Members of the Congress, the Constitu- 
tion makes us not rivals for power but 
partners for progress. We are all trustees 
for the American people, custodians of the 
American heritage. It is my task to report 
the State of the Union — to improve it is the 
task of us all. 

In the past year, I have travelled not only 
across our own land but to other lands — 
to the North and the South, and across the 
seas. And I have found — as I am sure you 
have, in your travels — that people every- 
where, in spite of occasional disappoint- 



ments, look to us — not to our wealth or 
power, but to the splendor of our ideals. 
For our Nation is commissioned by history 
to be either an observer of freedom's failure 
or the cause of its success. Our overriding 
obligation in the months ahead is to fulfill 
the world's hopes by fulfilling our own faith. 

I. STRENGTHENING THE ECONOMY 

That task must begin at home. For if we 
cannot fulfill our own ideals here, we cannot 
expect others to accept them. And when the 
youngest child alive today has grown to the 
cares of manhood, our position in the world 
will be determined first of all by what pro- 
visions we make today — ^for his education, 
his health, and his opportunities for a good 
home and a good job and a good life. 

At home, we began the year in the valley 
of recession — we completed it on the high 
road of recovery and growth. With the help 
of new congressionally approved or admin- 
istratively increased stimulants to our econ- 



[7] Jan. II 



Public Papers of the Presidents 



omy, the number of major surplus labor 
areas has declined from loi to 60; non- 
agricultural employment has increased by 
more than a million jobs; and the average 
factory work-week has risen to well over 40 
hours. At year's end the economy which 
Mr. Khrushchev once called a "stumbling 
horse" was racing to new records in con- 
sumer spending, labor income, and indus- 
trial production. 

We are gratified — but we are not satisfied. 
Too many unemployed are still looking for 
the blessings of prosperity. As those who 
leave our schools and farms demand new 
jobs, automation takes old jobs away. To 
expand our growth and job opportunities, 
I urge on the Congress three measures: 

(i) First, the Manpower Training and 
Development Act, to stop the waste of able- 
bodied men and women who want to work, 
but whose only skill has been replaced by a 
machine, or moved with a mill, or shut down 
with a mine; 

(2) Second, the Youth Employment Op- 
portunities Act, to help train and place not 
only the one million young Americans who 
are botli out of school and out of work, but 
the twenty-six million young Americans 
entering the labor market in this decade; and 

(3) Third, the 8 percent tax credit for 
investment in machinery and equipment, 
which, combined with planned revisions of 
depreciation allowances, will spur our 
modernization, our growth, and our ability 
to compete abroad. 

Moreover — ^pleasant as it may be to bask 
in the warmth of recovery — ^let us not forget 
that we have suffered three recessions in the 
last 7 years. The time to repair the roof is 
when the sun is shining — ^by filling three 
basic gaps in our anti-recession protection. 
We need: 

(i) First, Presidential standby authority, 
subject to congressional veto, to adjust per- 
sonal income tax rates downward within a 
specified range and time, to slow down an 
economic decline before it has dragged us 
all down; 

(2) Second, Presidential standby authority. 



upon a given rise in the rate of unemploy- 
ment, to accelerate Federal and federally- 
aided capital improvement programs; and 

(3) Third, a permanent strengthening of 
our unemployment compensation system — ^to 
maintain for our fellow citizens searching 
for a job who cannot find it, their purchasing 
power and their living standards without 
constant resort — as we have seen in recent 
years by the Congress and the administra- 
tions — to temporary supplements. 

If we enact this six-part program, we can 
show the whole world that a free economy 
need not be an unstable economy — that a 
free system need not leave men unem- 
ployed — and that a free society is not only 
the most productive but the most stable form 
of organization yet fashioned by man. 

II. FIGHTING INFLATION 

But recession is only one enemy of a free 
economy — ^inflation is another. Last year, 
1 96 1, despite rising production and demand, 
consumer prices held almost steady — ^and 
wholesale prices declined. This is the best 
record of overall price stability of any com- 
parable period of recovery since the end of 
World War II. 

Inflation too often follows in the shadow 
of growth — while price stability is made 
easy by stagnation or controls. But we 
mean to maintain both stability and growth 
in a climate of freedom. 

Our first line of defense against inflation 
is the good sense and public spirit of busi- 
ness and labor — keeping their total increases 
in wages and profits in step with produc- 
tivity. There is no single statistical test to 
guide each company and each union. But 
I strongly urge them — for their country's 
interest, and for their own — to apply the 
test of the public interest to these trans- 
actions. 

Within this same framework of growth 
and wage-price stability: 

— This administration has helped keep our 
economy competitive by widening the access 
of small business to credit and Govern- 



John F. Kennedy, 7962 



Jan. II [7] 



ment contracts, and by stepping up the 
drive against monopoly, price-fixing, and 
racketeering; 

— We will submit a Federal Pay Reform 
bill aimed at giving our classified, postal, 
and other employees new pay scales more 
comparable to those of private industry; 

— ^We are holding the fiscal 1962 budget 
deficit far below the level incurred after the 
last recession in 1958; and, finally, 

— I am submitting for fiscal 1963 a bal- 
anced Federal Budget. 

This is a joint responsibility, requiring 
Congressional cooperation on appropriations, 
and on three sources of income in particular: 

(i) First, an increase in postal rates, to 
end the postal deficit; 

(2) Secondly, passage of the tax reforms 
previously urged, to remove unwarranted 
tax preferences, and to apply to dividends 
and to interest the same withholding re- 
quirements we have long applied to wages; 
and 

(3) Third, extension of the present ex- 
cise and corporation tax rates, except for 
those changes — which will be recommended 
in a message — affecting transportation. 

III. GETTING AMERICA MOVING 

But a stronger nation and economy re- 
quire more than a balanced Budget. They 
require progress in those programs that spur 
our growth and fortify our strength. 

CITIES 

A strong America depends on its cities — 
America's glory, and sometimes America's 
shame. To substitute sunlight for conges- 
tion and progress for decay, we have stepped 
up existing urban renewal and housing pro- 
grams, and launched new ones — redoubled 
the attack on water pollution — speeded aid 
to airports, hospitals, highways, and our de- 
clining mass transit systems — and secured 
new weapons to combat organized crime, 
racketeering, and youth delinquency, as- 
sisted by the coordinated and hard-hitting 
efforts of our investigative services: the FBI, 



the Internal Revenue, the Bureau of Nar- 
cotics, and many others. We shall need 
further anti-crime, mass transit, and trans- 
portation legislation—and new tools to fight 
air pollution. And with all this effort 
under way, both equity and commonsense 
require that our nation's urban areas — con- 
taining three-fourths of our population — sit 
as equals at the Cabinet table. I urge a new 
Department of Urban Affairs and Housing. 

AGRICULTURE AND RESOURCES 

A Strong America also depends on its 
farms and natural resources. American 
farmers took heart in 1961 — from a billion 
dollar rise in farm income — and from a 
hopeful start on reducing the farm surpluses. 
But we are still operating under a patch- 
work accumulation of old laws, which cost 
us $1 billion a year in CCC carrying charges 
alone, yet fail to halt rural poverty or boost 
farm earnings. 

Our task is to master and turn to fully 
fruitful ends the magnificent productivity of 
our farms and farmers. The revolution on 
our own countryside stands in the sharpest 
contrast to the repeated farm failures of the 
Communist nations and is a source of pride 
to us all. Since 1950 our agricultural output 
per man-hour has actually doubled! With- 
out new, realistic measures, it will someday 
swamp our farmers and our taxpayers in a 
national scandal or a farm depression. 

I will, therefore, submit to the Congress 
a new comprehensive farm program — tai- 
lored to fit the use of our land and the 
supplies of each crop to the long-range needs 
of the sixties — and designed to prevent 
chaos in the sixties with . a program of 
commonsense. 

We also need for the sixties — ^if we are 
to bequeath our full national estate to our 
heirs— a new long-range conservation and 
recreation program — expansion of our su- 
perb national parks and forests — ^preserva- 
tion of our authentic wilderness areas — 
new starts on water and power projects as 
our population steadily increases — and ex- 



[7] Jan. II 



Public Papers of the Presidents 



panded REA generation and transmission 
loans. 

CIVIL RIGHTS 

But America stands for progress in human 
rights as well as economic affairs, and a 
strong America requires the assurance of 
full and equal rights to all its citizens, of 
any race or of any color. This administra- 
tion has shown as never before how much 
could be done through the full use of Ex- 
ecutive powers — ^through the enforcement 
of laws already passed by the Congress — 
through persuasion, negotiation, and liti- 
gation, to secure the constitutional rights of 
all: the right to vote, the right to travel 
without hindrance across State lines, and 
the right to free public education. 

I issued last March a comprehensive order 
to guarantee the right to equal employment 
opportunity in all Federal agencies and con- 
tractors. The Vice President's Committee 
thus created has done much, including the 
voluntary "Plans for Progress" which, in all 
sections of the country, are achieving a quiet 
but striking success in opening up to all 
races new professional, supervisory, and 
other job opportunities. 

But there is much more to be done — by the 
Executive, by the courts, and by the Con- 
gress. Among the bills now pending before 
you, on which the executive departments 
will comment in detail, are appropriate 
methods of strengthening these basic rights 
which have our full support. The right to 
vote, for example, should no longer be de- 
nied through such arbitrary devices on a 
local level, sometimes abused, such as literacy 
tests and poll taxes. As we approach the 
looth anniversary, next January, of the 
Emancipation Proclamation, let the acts of 
every branch of the Government — and every 
citizen — portray that "righteousness does 
exalt a nation." 

HEALTH AND WELFARE 

Finally, a strong America cannot neglect 
the aspirations of its citizens — the welfare 
of the needy, the health care of the elderly, 
the education of the young. For we are not 



developing the Nation's wealth for its own 
sake. Wealth is the means — and people are 
the ends. All our material riches will avail 
us little if we do not use them to expand the 
opportunities of our people. 

Last year, we improved the diet of needy 
people — provided more hot lunches and fresh 
milk to school children — built more college 
dormitories — and, for the elderly, expanded 
private housing, nursing homes, heath serv- 
ices, and social security. But we have just 
begun. 

To help those least fortunate of all, I am 
recommending a new public welfare pro- 
gram, stressing services instead of support, 
rehabilitation instead of relief, and training 
for useful work instead of prolonged 
dependency. 

To relieve the critical shortage of doctors 
and dentists — and this is a matter which 
should concern us all — and expand research, 
I urge action to aid medical and dental col- 
leges and scholarships and to establish new 
National Institutes of Health. 

To take advantage of modern vaccination 
achievements, I am proposing a mass im- 
munization program, aimed at the virtual 
elimination of such ancient enemies of our 
children as polio, diphtheria, whooping 
cough, and tetanus. 

To protect our consumers from the care- 
less and the unscrupulous, I shall recommend 
improvements in the Food and Drug laws — 
strengthening inspection and standards, halt- 
ing unsafe and worthless products, prevent- 
ing misleading labels, and cracking down on 
the illicit sale of habit-forming drugs. 

But in matters of health, no piece of un- 
finished business is more important or more 
urgent than the enactment under the social 
security system of health insurance for the 
aged. 

For our older citizens have longer and 
more frequent illnesses, higher hospital and 
medical bills and too little income to pay 
them. Private health insurance helps very 
few — ^for its cost is high and its coverage 
limited. Public welfare cannot help those 
too proud to seek relief but hard-pressed to 



8 



]ohn F. Kennedy, 7962 



Jan. II [7] 



pay their own bills. Nor can their children 
or grandchildren always sacrifice their own 
health budgets to meet this constant drain. 
Social security has long helped to meet the 
hardships of retirement, death, and disability. 
I now urge that its coverage be extended 
without further delay to provide health in- 
surance for the elderly. 

EDUCATION 

Equally important to our strength is the 
quality of our education. Eight million 
adult Americans are classified as functionally 
illiterate. This is a disturbing figure — re- 
flected in Selective Service rejection rates — 
reflected in welfare rolls and crime rates. 
And I shall recommend plans for a massive 
attack to end this adult illiteracy. 

I shall also recommend bills to improve 
educational quality, to stimulate the arts, 
and, at the college level, to provide Federal 
loans for the construction of academic facili- 
ties and federally financed scholarships. 

If this Nation is to grow in wisdom and 
strength, then every able high school gradu- 
ate should have the opportunity to develop 
his talents. Yet nearly half lack either the 
funds or the facilities to attend college. 
Enrollments are going to double in our col- 
leges in the short space of 10 years. The 
annual cost per student is skyrocketing to 
astronomical levels — now averaging $1,650 
a year, although almost half of our families 
earn less than $5,000. They cannot afford 
such costs — but this Nation cannot afford to 
maintain its military power and neglect its 
brainpower. 

But excellence in education must begin at 
the elementary level. I sent to the Congress 
last year a proposal for Federal aid to public 
school construction and teachers' salaries. 
I believe that bill, which passed the Senate 
and received House Committee approval, 
offered the minimum amount required by 
our needs and — in terms of across-the-board 
aid — the maximum scope permitted by our 
Constitution. I therefore see no reason to 
weaken or withdraw that bill: and I urge its 
passage at this session. 



^'Civilization," said H. G. Wells, "is a 
race between education and catastrophe." 
It is up to you in this Congress to determine 
the winner of that race. 

These are not unrelated measures ad- 
dressed to specific gaps or grievances in our 
national life. They are the pattern of our 
intentions and the foundation of our hopes. 
"I believe in democracy," said Woodrow 
Wilson, "because it releases the energy of 
every human being." The dynamic of 
democracy is the power and- the purpose of 
the individual, and the policy of this admin- 
istration is to give to the individual the 
opportunity to realize his own highest 
possibilities. 

Our program is to open to all the oppor- 
tunity for steady and productive employ- 
ment, to remove from all the handicap of 
arbitrary or irrational exclusion, to offer 
to all the facilities for education and health 
and welfare, to make society the servant of 
the individual and the individual the source 
of progress, and thus to realize for all the 
full promise of American life. 

IV. OUR GOALS ABROAD 

All of these efforts at home give meaning 
to our efforts abroad. Since the close of the 
Second World War, a global civil war has 
divided and tormented mankind. But it is 
not our military might, or our higher stand- 
ard of living, that has most distinguished us 
from our adversaries. It is our belief that 
the state is the servant of the citizen and 
not his master. 

This basic clash of ideas and wills is but 
one of the forces reshaping our globe — swept 
as it is by the tides of hope and fear, by 
crises in the headlines today that become 
mere footnotes tomorrow. Both the suc- 
cesses and the setbacks of the past year 
remain on our agenda of unfinished busi- 
ness. For every apparent blessing contains 
the seeds of danger — every area of trouble 
gives out a ray of hope — and the one un- 
changeable certainty is that nothing is 
certain or unchangeable. 



715-405 0—64- 



[7] Jan. II 



Public Papers of the Presidents 



Yet our basic goal remains the same: a 
peaceful world community of free and in- 
dependent states — free to choose their own 
future and their own system, so long as it 
does not threaten the freedom of others. 

Some may choose forms and ways that 
we would not choose for ourselves — but it 
is not for us that they are choosing. We 
can welcome diversity — the Communists 
cannot. For we offer a world of choice — 
they offer the world of coercion. And the 
way of the past shows clearly that freedom, 
not coercion, is the wave of the future. At 
times our goal has been obscured by crisis or 
endangered by conflict — but it draws sus- 
tenance from five basic sources of strength: 

— the moral and physical strength of the 
United States; 

— the united strength of the Atlantic Com- 
munity; 

— the regional strength of our Hemi- 
spheric relations; 

— the creative strength of our efforts in 
the new and developing nations; and 

— ^the peace-keeping strength of the 
United Nations. 

v. OUR MILITARY STRENGTH 

Our moral and physical strength begins 
at home as already discussed. But it includes 
our military strength as well. So long as 
fanaticism and fear brood over the affairs 
of men, we must arm to deter others from 
aggression. 

In the past 12 months our military posture 
has steadily improved. We increased the 
previous defense budget by 15 percent — not 
in the expectation of war but for the preser- 
vation of peace. We more than doubled our 
acquisition rate of Polaris submarines — we 
doubled the production capacity for Minute- 
man missiles — and increased by 50 percent 
the number of manned bombers standing 
ready on a 15 minute alert. This year the 
combined force levels planned under our 
new Defense budget — including nearly three 
hundred additional Polaris and Minuteman 
missiles — have been precisely calculated to 



insure the continuing strength of our nuclear 
deterrent. 

But our strength may be tested at many 
levels. We intend to have at all times the 
capacity to resist non-nuclear or limited 
attacks — as a complement to our nuclear 
capacity, not as a substitute. We have re- 
jected any all-or-nothing posture which 
would leave no choice but inglorious retreat 
or unlimited retaliation. 

Thus we have doubled the number of 
ready combat divisions in the Army's stra- 
tegic reserve — increased our troops in 
Europe — built up the Marines — added new 
sealift and airlift capacity — ^modernized our 
weapons and ammunition — expanded our 
anti-guerrilla forces — ^and increased the 
active fleet by more than 70 vessels and our 
tactical air forces by nearly a dozen wings. 

Because we needed to reach this higher 
long-term level of readiness more quickly, 
155,000 members of the Reserve and Na- 
tional Guard were activated under the Act 
of this Congress. Some disruptions and dis- 
tress were inevitable. But the overwhelming 
majority bear their burdens — and their 
Nation's burdens — ^with admirable and tra- 
ditional devotion. 

In the coming year, our reserve programs 
will be revised — two Army Divisions will, 
I hope, replace those Guard Divisions on 
duty — and substantial other increases will 
boost our Air Force fighter units, the pro- 
curement of equipment, and our continental 
defense and warning efforts. The Nation's 
first serious civil defense shelter program is 
under way, identifying, marking, and stock- 
ing 50 million spaces; and I urge your ap- 
proval of Federal incentives for the construc- 
tion of public fall-out shelters in schools and 
hospitals and similar centers. 

VI. THE UNITED NATIONS 

But arms alone are not enough to keep the 
peace — ^it must be kept by men. Our instru- 
ment and our hope is the United Nations — 
and I see little merit in the impatience of 
those who would abandon this imperfect 
world instrument because they dislike our 



10 



John F. Kennedy, 7962 



Jan. II [7] 



imperfect world. For the troubles of a 
world organization merely reflect the 
troubles of the world itself. And if the 
organization is weakened, these troubles can 
only increase. We may not always agree 
with every detailed action taken by every 
officer of the United Nations, or with every 
voting majority. But as an institution, it 
should have in the future, as it has had in 
the past since its inception, no stronger or 
more faithful member than the United States 
of America. 

In 1 96 1 the peace-keeping strength of the 
United Nations was reinforced. And those 
who preferred or predicted its demise, en- 
visioning a troika in the seat of Hammar- 
skjold — or Red China inside the Assembly — 
have seen instead a new vigor, under a new 
Secretary General and a fully independent 
Secretariat. In making plans for a new 
forum and principles on disarmament — for 
peace-keeping in outer space — ^for a decade 
of development effort — the UN fulfilled its 
Charter's lofty aim. 

Eighteen months ago the tangled and 
turbulent Congo presented the UN with its 
gravest challenge. The prospect was one of 
chaos — or certain big-power confrontation, 
with all of its hazards and all of its risks, 
to us and to others. Today the hopes have 
improved for peaceful conciliation within a 
united Congo. This is the objective of our 
policy in this important area. 

No policeman is universally popular — 
particularly when he uses his stick to restore 
law and order on his beat. Those members 
who are willing to contribute their votes and 
their views — ^but very little else — have cre- 
ated a serious deficit by refusing to pay their 
share of special UN Assessments. Yet they 
do pay their annual assessments to retain 
their votes — and a new UN Bond issue, 
financing special operations for the next i8 
months, is to be repaid with interest from 
these regular assessments. This is clearly in 
our interest. It will not only keep the UN 
solvent, but require all voting members to 
pay their fair share of its activities. Our 
share of special operations has long been 



much higher than our share of the annual 
assessment — and the bond issue will in effect 
reduce our disproportionate obligation, and 
for these reasons, I am urging Congress to 
approve our participation. 

With the approval of this Congress, we 
have undertaken in the past year a great new 
effort in outer space. Our aim is not simply 
to be first on the moon, any more than 
Charles Lindbergh's real aim was to be the 
first to Paris. His aim was to develop the 
techniques of our own country and other 
countries in the field of air and the atmos- 
phere, and our objective in making this 
effort, which we hope will place one of our 
citizens on the moon, is to develop in a new 
frontier of science, commerce and coopera- 
tion, the position of the United States and 
the Free World. 

This Nation belongs among the first to 
explore it, and among the first — if not the 
first — we shall be. We are offering our 
know-how and our cooperation to the 
United Nations. Our satellites will soon be 
providing other nations with improved 
weather observations. And I shall soon send 
to the Congress a measure to govern the 
financing and operation of an International 
Communications Satellite system, in a man- 
ner consistent with the public interest and 
our foreign policy. 

But peace in space will help us naught 
once peace on earth is gone. World order 
will be secured only when the whole world 
has laid down these weapons which seem to 
offer us present security but threaten the 
future survival of the human race. That 
armistice day seems very far away. The vast 
resources of this planet are being devoted 
more and more to the means of destroying, 
instead of enriching, human life. 

But the world was not meant to be a prison 
in which man awaits his execution. Nor 
has mankind survived the tests s^nd trials of 
thousands of years to surrender everything — 
including its existence — now. This Nation 
has the will and the faith to make a supreme 
effort to break the log jam on disarmament 
and nuclear tests — and we will persist until 



II 



[7] Jan. II 



Public Papers of the Presidents 



we prevail, until the rule of law has replaced 
the ever dangerous use of force. 



VII. LATIN AMERICA 

I turn now to a prospect of great promise: 
our Hemispheric relations. The Alliance 
for Progress is being rapidly transformed 
from proposal to program. Last month in 
Latin America I saw for myself the quicken- 
ing of hope, the revival of confidence, the 
new trust in our country — among workers 
and farmers as well as diplomats. We have 
pledged our help in speeding their economic, 
educational, and social progress. The Latin 
American Republics have in turn pledged a 
new and strenuous effort of self-help and 
self-reform. 

To support this historic undertaking, I am 
proposing — under the authority contained 
in the bills of the last session of the Con- 
gress — a special long-term Alliance for 
Progress fund of $3 billion. Combined with 
our Food for Peace, Export-Import Bank, 
and other resources, this will provide more 
than $1 billion a year in new support for 
the Alliance. In addition, we have increased 
twelvefold our Spanish and Portuguese- 
language broadcasting in Latin America, 
and improved Hemispheric trade and de- 
fense. And while the blight of communism 
has been increasingly exposed and isolated 
in the Americas, liberty has scored a gain. 
The people of the Dominican Republic, with 
our firm encouragement and help, and those 
of our sister Republics of this Hemisphere 
are safely passing through the treacherous 
course from dictatorship through disorder 
towards democracy. 



VIII. THE NEW AND DEVELOPING NATIONS 

Our eflforts to help other new or develop- 
ing nations, and to strengthen their stand 
for freedom, have also made progress. A 
newly unified Agency for International 
Development is reorienting our foreign as- 
sistance to emphasize long-term develop- 
ment loans instead of grants, more economic 



aid instead of military, individual plans to 
meet the individual needs of the nations, and 
new standards on what they must do to 
marshal their own resources. 

A newly conceived Peace Corps is win- 
ning friends and helping people in fourteen 
countries — supplying trained and dedicated 
young men and women, to give these new 
nations a hand in building a society, and a 
glimpse of the best that is in our country. 
If there is a problem here, it is that we 
cannot supply the spontaneous and mount- 
ing demand. 

A newly-expanded Food for Peace Pro- 
gram is feeding the hungry of many lands 
with the abundance of our productive 
farms — ^providing lunches for children in 
school, wages for economic development, 
relief for the victims of flood and famine, 
and a better diet for millions whose daily 
bread is their chief concern. 

These programs help people; and, by help- 
ing people, they help freedom. The views 
of their governments may sometimes be 
very different from ours — but events in 
Africa, the Middle East, and Eastern Europe 
teach us never to write off any nation as lost 
to the Communists. That is the lesson of 
our time. We support the independence 
of those newer or weaker states whose his- 
tory, geography, economy or lack of power 
impels them to remain outside "entangling 
alliances" — as we did for more than a cen- 
tury. For the independence of nations is 
a bar to the Communists' "grand design" — 
it is the basis of our own. 

In the past year, for example, we have 
urged a neutral and independent Laos — 
regained there a common policy with our 
major allies — and insisted that a cease-fire 
precede negotiations. While a workable 
formula for supervising its independence is 
still to be achieved, both the spread of war — 
which might have involved this country 
also — and a Communist occupation have 
thus far been prevented. 

A satisfactory settlement in Laos would 
also help to achieve and safeguard the peace 
in Viet-Nam — where the foe is increasing 



12 



John F, Kennedy, 7962 



Jan. II [7] 



his tactics of terror — where our own efforts 
have been stepped up — and where the local 
government has initiated new programs and 
reforms to broaden the base of resistance. 
The .systematic aggression now bleeding that 
country is not a "war of liberation" — for 
Viet-Nam is already free. It is a war of 
attempted subjugation — and it will be 
resisted. 

IX. THE ATLANTIC COMMUNITY 

Finally, the united strength of the Atlantic 
Community has flourished in the last year 
under severe tests. NATO has increased 
both the number and the readiness of its air, 
ground, and naval units — both its nuclear 
and non-nuclear capabilities. Even greater 
efforts by all its members are still required. 
Nevertheless our unity of purpose and 
will has been, I believe, immeasurably 
strengthened. 

The threat to the brave city of Berlin 
remains. In these last 6 months the Allies 
have made it unmistakably clear that our 
presence in Berlin, our free access thereto, 
and the freedom of two million West Ber- 
liners would not be surrendered either to 
force or through appeasement — and to main- 
tain those rights and obligations, we are 
prepared to talk, when appropriate, and to 
fight, if necessary. Every member of 
NATO stands with us in a common com- 
mitment to preserve this symbol of free 
man's will to remain free. 

I cannot now predict the course of future 
negotiations over Berlin. I can only say 
that we are sparing no honorable effort to 
find a peaceful and mutually acceptable 
resolution of this problem. I believe such a 
resolution can be found, and with it an 
improvement in our relations with the Soviet 
Union, if only the leaders in the Kremlin 
will recognize the basic rights and interests 
involved, and the interest of all mankind 
in peace. 

But the Atlantic Community is no longer 
concerned with purely military aims. As its 
common undertakings grow at an ever- 



increasing pace, we are, and increasingly 
will be, partners in aid, trade, defense, 
diplomacy, and monetary affairs. 

The emergence of the new Europe is being 
matched by the emergence of new ties across 
the Atlantic. It is a matter of undramatic 
daily cooperation in hundreds of workaday 
tasks: of currencies kept in effective relation, 
of development loans meshed together, of 
standardized weapons, and concerted diplo- 
matic positions. The Atlantic Community 
grows, not like a volcanic mountain, by one 
mighty explosion, but like a coral reef, from 
the accumulating activity of all. 

Thus, we in the free world are moving 
steadily toward unity and cooperation, in the 
teeth of that old Bolshevik prophecy, and at 
the very time when extraordinary rumbles 
of discord can be heard across the Iron 
Curtain. It is not free societies which bear 
within them the seeds of inevitable disunity. 

X. OUR BALANCE OF PAYMENTS 

On one special problem, of great concern 
to our friends, and to us, I am proud to give 
the Congress an encouraging report. Our 
efforts to safeguard the dollar are progress- 
ing. In the 1 1 months preceding last Febru- 
ary I, we suffered a net loss of nearly $2 
billion in gold. In the 11 months that fol- 
lowed, the loss was just over half a billion 
dollars. And our deficit in our basic trans- 
actions with the rest of the world — trade, 
defense, foreign aid, and capital, excluding 
volatile short-term flows — has been reduced 
from $2 billion for i960 to about one-third 
that amount for 1961. Speculative fever 
against the dollar is ending — and confidence 
in the dollar has been restored. 

We did not — and could not — ^achieve these 
gains through import restrictions, troop 
withdrawals, exchange controls, dollar de- 
valuation or choking off domestic recovery. 
We acted not in panic but in perspective. 
But the problem is not yet solved. Persist- 
ently large deficits would endanger our eco- 
nomic growth and our military and defense 
commitments abroad. Our goal must be a 



13 



[7] Jan. II 



Public Papers of the Presidents 



reasonable equilibrium in our balance of 
payments. With the cooperation of the 
Congress, business, labor, and our major 
allies, that goal can be reached. 

We shall continue to attract foreign tour- 
ists and investments to our shores, to seek 
increased military purchases here by our 
allies, to maximize foreign aid procurement 
from American firms, to urge increased aid 
from other fortunate nations to the less 
fortunate, to seek tax laws which do not 
favor investment in other industrialized 
nations or tax havens, and to urge coordina- 
tion of allied fiscal and monetary policies so 
as to discourage large and disturbing capital 
movements. 



Above all, if we are to pay for our com- 
mitments abroad, we must expand our 
exports. Our businessmen must be export- 
conscious and export competitive. Our tax 
poHcies must spur modernization of our 
plants — our wage and price gains must be 
consistent with productivity to hold the line 
on prices — our export credit and promotion 
campaigns for American industries must 
continue to expand. 

But the greatest challenge of all is posed 
by the growth of the European Common 
Market. Assuming the accession of the 
United Kingdom, there will arise across 
the Atlantic a trading partner behind a 
single external tariff similar to ours with 
an economy which nearly equals our own. 
Will we in this country adapt our thinking 
to these new prospects and patterns — or will 
we wait until events have passed us by? 

This is the year to decide. The Reciprocal 
Trade Act is expiring. We need a new 
law — a wholly new approach — a bold new 
instrument of American trade policy. Our 
decision could well affect the unity of the 
West, the course of the Cold War, and the 
economic grov^h of our Nation for a 
generation to come. 

If we move decisively, our factories and 
farms can increase their sales to their richest, 
fastest-growing market. Our exports will 



increase. Our balance of payments position 
will improve. And we will have forged 
across the Atlantic a trading partnership 
with vast resources for freedom. 

If, on the other hand, we hang back in 
deference to local economic pressures, we 
will find ourselves cut off from our major 
allies. Industries — and I believe this is most 
vital — industries will move their plants and 
jobs and capital inside the walls of the Com- 
mon Market, and jobs, therefore, will be 
lost here in the United States if they cannot 
otherwise compete for its consumers. Our 
farm surpluses — our balance of trade, as you 
all know, to Europe, the Common Market, 
in farm products, is nearly three or four to 
one in our favor, amounting to one of the 
best earners of dollars in our balance of pay- 
ments structure, and without entrance to this 
Market, without the ability to enter it, our 
farm surpluses will pile up in the Middle 
West, tobacco in the South, and other com- 
modities, which have gone through Western 
Europe for 15 years. Our balance of pay- 
ments position will worsen. Our consumers 
will lack a wider choice of goods at lower 
prices. And millions of American work- 
ers — ^whose jobs depend on the sale or the 
transportation or the distribution of exports 
or imports, or whose jobs will be endangered 
by the movement of our capital to Europe, 
or whose jobs can be maintained only in an 
expanding economy — these millions of work- 
ers in your home States and mine will see 
their real interests sacrificed. 

Members of the Congress: The United 
States did not rise to greatness by waiting 
for others to lead. This Nation is the 
world's foremost manufacturer, farmer, 
banker, consumer, and exporter. The Com- 
mon Market is moving ahead at an economic 
growth rate twice ours. The Communist 
economic offensive is under way. The 
opportunity is ours — the initiative is up to 
us — and I believe that 1962 is the time. 

To seize that initiative, I shall shordy 
send to the Congress a new five-year Trade 
Expansion Action, far-reaching in scope but 
designed with great care to make certain 



14 



John F. Kennedy, 1962 



Jan. 15 [8] 



that its benefits to our people far outweigh 
any risks. The bill will permit the gradual 
elimination of tariffs here in the United 
States and in the Common Market on those 
items in which we together supply 80 per- 
cent of the world's trade — mostly items 
in which our own ability to compete is dem- 
onstrated by the fact that we sell abroad, 
in these items, substantially more than we 
import. This step will make it possible for 
our major industries to compete with their 
counterparts in Western Europe for access 
to European consumers. 

On other goods the bill will permit a grad- 
ual reduction of duties up to 50 percent — 
permitting bargaining by major categories — 
and provide for appropriate and tested forms 
of assistance to firms and employees adjust- 
ing to import competition. We are not 
neglecting the safeguards provided by peril 
points, an escape clause, or the National 
Security Amendment. Nor are we aban- 
doning our non-European friends or our 
traditional "most-favored nation" principle. 
On the contrary, the bill will provide new 
encouragement for their sale of tropical 
agricultural products, so important to our 
friends in Latin America, who have long 
depended upon the European market, who 
now find themselves faced with new chal- 
lenges which we must join with them in 
overconiing. 

Concessions, in this bargaining, must of 
course be reciprocal, not unilateral. The 
Common Market will not fulfill its own 
high promise unless its outside tariff walls 
are low. The dangers of restriction or ti- 
midity in our own policy have counterparts 
for our friends in Europe. For together 
we face a common challenge: to enlarge 
the prosperity of free men everywhere — to 



build in partnership a new trading commu- 
nity in which all free nations may gain from 
the productive energy of free competitive 
effort. 

These various elements in our foreign 
policy lead, as I have said, to a single 
goal — ^the goal of a peaceful world of free 
and independent states. This is our guide 
for the present and our vision for the fu- 
ture — a free community of nations, inde- 
pendent but interdependent, uniting north 
and south, east and west, in one great family 
of man, outgrowing and transcending the 
hates and fears that rend our age. 

We will not reach that goal today, or 
tomorrow. We may not reach it in our 
own lifetime. But the quest is the greatest 
adventure of our century. We sometimes 
chafe at the burden of our obligations, the 
complexity of our decisions, the agony of 
our choices. But there is no comfort or 
security for us in evasion, no solution in 
abdication, no relief in irresponsibility. 

A year ago, in assuming the tasks of the 
Presidency, I said that few generations, in 
all history, had been granted the role of 
being the great defender of freedom in its 
hour of maximum danger. This is our good 
fortune; and I welcome it now as I did a 
year ago. For it is the fate of this genera- 
tion — of you in the Congress and of me as 
President — to live with a struggle we did 
not start, in a world we did not make. But 
the pressures of life are not always distrib- 
uted by choice. And while no nation has 
ever faced such a challenge, no nation has 
ever been so ready to seize the burden and 
the glory of freedom. 

And in this high endeavor, may God 
watch over the United States of America. 



8 The President's News Conference of 
January 15, 1962 

THE PRESIDENT, [i.] I have just One an- 
nouncement. I am sure you are all familiar 
with the story in this morning's paper of the 



documentation on the study of comparisons 
of those in our schools and universities and 
the kind of subjects which they study which 



15 



[8] Jan. 15 



Public Papers of the Presidents 



was published by the National Science Foun- 
dation. This has been a matter of some 
concern to me for some time because one of 
the most critical problems facing this Nation 
is the inadequacy of the supply of scientific 
and technical manpower, to satisfy the ex- 
panding requirements of this country's re- 
search and development efforts in the near 
future. In 195 1 our universities graduated 
19,600 students in the physical sciences. In 
i960 in spite of the substantial increase in 
our population, during the last 10 years, and 
in spite of the fact that the demand for 
people of skill in this field has tremendously 
increased with our efforts in defense and 
space, industrial research, and all of the rest, 
in i960 the number had fallen from 19,600 
to 17,100. In 195 1 there were 22,500 study- 
ing in the biological sciences; in i960 there 
were only 16,700. In the field of engineer- 
ing, enrollment rose from 232,000 to 269,000 
in the period 195 1 to 1957. Since 1957 
there has been a continual decline in enroll- 
ment. Last year the figure was down to 
240,000. 

This is a matter of growing concern. It is 
more than a matching of numerical supply 
to anticipate a demand, though this alone 
would be difficult. Because of the serious- 
ness of this problem for the long-range 
future of the United States, I have asked my 
Science Advisory Committee, in cooperation 
with the Federal Council for Science and 
Technology, to review available studies and 
other pertinent information, and to report to 
me as quickly as possible on the specific 
measures that can be taken within and with- 
out the Government to develop the necessary 
and well qualified scientists and engineers 
and technicians to meet our society's com- 
plex needs — governmental, educational, and 
industrial. 

In undertaking this task, the committee 
will draw on the advice and assistance of 
individuals and agencies, including the Na- 
tional Academy of Sciences, which will 
shordy begin at my request a new study of 
scientific and technical manpower utilization. 

To all those who may be within the sound 



of my voice or who may follow your stories 
in the papers, I want to emphasize the great 
new and exciting field of the sciences and 
while we wish to emphasize always the 
liberal arts, I do believe that these figures 
indicate a need on the national level and also 
a great opportunity for talented young men 
and women. And I hope that their teachers, 
their school boards, and they themselves and 
their families will give this matter considera- 
tion in developing their careers. 

[2.] Q. Mr. President, as you are aware, 
there has been nothing official on this, but 
there have been some unofficial reports stem- 
ming from Ambassador Thompson's first 
two exploratory conferences in Moscow. 
These reports are to the effect that the situa- 
tion with Russia has not changed. 

Could you tell us, sir, whether as a result 
of Mr. Thompson's two meetings in Mos- 
cow that you detect any evidence, new 
evidence, of a possible solution of our dif- 
ferences with Russia over Berlin? 

THE PRESIDENT. I think — it's my hope 
that these talks will continue, so that this 
matter will be subjected to the most 
thorough scrutiny and examination, to see 
whether such an arrangement is possible. 
Ambassador Thompson, I am hopeful, there- 
fore, will meet with the Foreign Minister 
again and after these meetings have gone 
on for a reasonable period, we can make a 
much more concise judgment in answer to 
your question. But I think it would be 
premature today. 

Q. Mr. President, in that connection, 
could you give us any idea of the length of 
a reasonable period of time.? 

THE PRESIDENT. No, I think it would really 
depend upon what was happening during 
the negotiations. In other words, if prog- 
ress were being made, or if there were evi- 
dence that progress could be made, of course, 
then the time would be different than it 
would be if there was no evidence of any 
meeting of minds. So I think the impor- 
tant thing now is to continue and I'm — ^Am- 
bassador Thompson will. 

[3.] Q. Mr. President, the United States 



16 



John F. Kennedy, 7962 



Jan. 15 [8] 



has made informal but strenuous efforts to 
reach a peaceful solution of the Indonesian- 
Dutch dispute. Could you say, sir, if your 
hopes are in any way possible of fulfillment 
now, and if our efforts should fail, would we 
then turn to the United Nations? 

THE PRESIDENT. We do not have any more 
precise information than the news story with 
which you are familiar in regard to the state- 
ment of the Dutch. We have been ex- 
tremely anxious that a peaceful accommoda- 
tion be reached in this matter and have used 
our influence to bring that about. I am 
particularly glad that the Secretary General 
of the United Nations, Mr. U Thant, has 
been occupying himself with a good deal 
of energy to try to see if there is a possibility 
for a peaceful setdement. 

I am hopeful that both parties will respond 
to his efforts, and that we can prevent an 
outbreak of hostilities between Indonesia 
and the Dutch. Great responsibility rests on 
both of these countries, and I am hopeful 
that they will give Mr. U Thant every co- 
operation because the alternative would not 
be happy for the world, nor, really, I think, 
in the long run, for the parties involved. 
A peaceful solution, of course, would be the 
best thing and that's what we're working for. 

[4.] Q. Mr. President, this is a question 
about your trade liberalization program. 
Some members of Congress from industrial 
areas are reporting privately that they are 
worried about the problems of their support 
of the program because some of their manu- 
facturing constituents say that unless they 
are able to get things, for example, like wool 
and cotton, at world market prices instead of 
artificial prices, that they can't afford to go 
along with the idea of reducing trade bar- 
riers. Can you give us your assessment of 
how serious you think this problem is and 
do you see any possible encouragement to 
them on it? 

THE PRESIDENT. Well, of course, there are 
two different — one is cotton, which is in 
surplus here in the United States, and the 
other is wool, which we import. In the case 
of cotton, as you know, we send out, export. 



about 6 million bales of cotton a year, and 
we import about 600,000 manufactured 
bales, textiles. In fact, we export almost as 
much cotton, manufactured textiles, as we 
import. So the export of cotton is a very 
important ingredient in our balance of pay- 
ments. 

I think the Japanese alone buy, I think, 
almost $240 or $250 million of cotton. I 
believe, as I said before, that while some 
industries may not get the same benefit out 
of this proposal as others will, that generally, 
it will be very helpful to industry and very 
helpful to agriculture and most helpful to 
the United States. 

And I think that if the members of Con- 
gress begin to examine the figures in their 
districts and in their States, and these figures 
are being prepared which show where the 
balance of trade runs, then I think that we 
can get a majority support for the legislation. 
A good deal of concern is expressed about 
Japan, but we ran a half billion dollar balance 
of trade in our favor. We sold Japan last 
year a half billion dollars more than they 
bought from us. So that I believe the United 
States can compete. 

As I said the other day, the fact is that the 
Common Market countries have had an 
extraordinary economic growth, full employ- 
ment and all the rest, and it is to increase our 
employment and our opportunities that we 
are recommending this. So in answer to 
your question, I believe that when the mem- 
bers of the House and Senate have examined 
our proposal, examined its safeguards, ex- 
amined what it can do for employment, I am 
hopeful, in fact, I feel it very possible, that 
we can secure a majority, even though it's 
a sophisticated matter and it is difficult to 
explain quickly. But I think that when the 
educational job is done, I think the country 
will understand that it is in our best interest. 

[5.] Q. Mr. President, are American 
troops now in combat in Viet-Nam? 

THE PRESIDENT. No. 

[6.] Q. Mr. President, Secretary Free- 
man has said that it's impossible to expand 
the food-for-peace program and Mr. Mc- 



[8] Jan. 15 



Public Papers of the Presidents 



Govern says it should be expanded. Have 
you been able to resolve this difference? 

THE PRESIDENT. Well, I think it should be 
expanded as w^e can. I think that Mr. Free- 
man's concern is v^ith, first, the regular mar- 
kets of trade, that the food for peace should 
complement it and not cut across it, the 
obligations w^e have to others who are also 
exporters of agricultural commodities, the 
question of funds and finances, of how 
much — if we're talking about the $2 billion 
a year, which we are now. I am hopeful 
that we can use our productive power well 
in this field, but I think that the question of 
the balance, and I think that Mr. McGovern 
and Mr. Freeman in my judgment will be 
in balance by the time they go before the 
Congress, because I think they both have 
the same basic interests in using our food 
well and not having it wasted — in storage. 

[7.] Q. What can you tell us about the 
administration's efforts to speed up the bar- 
gaining timetable in the steel industry, and 
what do you hope to accomplish by this? 

THE PRESIDENT. Well, I was hopeful, of 
course, from the beginning that an agree- 
ment would be reached in the steel industry, 
which would be, as I said in my letter to 
Mr. McDonald, which would be within the 
range of productivity and price stability, and 
which would come at a time, though I have 
not said this before, would come at a time 
which would prevent a repetition of what 
we saw in 1958 where there was a tremen- 
dous increase in inventory, in the first 6 
months of the year which adversely affected 
the economy in the last half of .the year, and 
also adversely affected employment in the 
steel mills themselves. So while they 
worked at high capacity for the first 6 
months, there were a good many layoffs 
after the strike. 

Now, if an agreement can be reached be- 
tween the steel companies and the steel 
union, of course it would be well to have it 
come early, so that the country and the con- 
sumers of steel would be able to make their 
plans for the future without stockpiling. 

Now this is a judgment for them. This 



is a free economy, and the Federal Govern- 
ment has no power unless there was a strike 
which affects the national emergency, but 
Secretary Goldberg is available for what- 
ever good offices he may perform. 

[8.] Q. Mr. President, after i year in 
the office of the Presidency, would you care 
to give us any of your comments about the 
first year and perhaps in particular the most 
rewarding and disappointing events that 
have come across your desk? 

THE PRESIDENT. Well, I would Say the 
most disappointing event was our failure to 
get an agreement on the cessation of nuclear 
testing, because I think that that might have 
been a very important step in easing the 
tension and preventing a proliferation of 
the weapons, and also in making it more 
possible for us to have progress on disarma- 
ment and some of the other matters that 
divide us. The thing that I think is the 
most heartening is the fact that first I think 
there's a greater surge for unity in the 
Western nations, and in our relations with 
Latin America, and also I think it has be- 
come more obvious that people do desire to 
be free and independent. And while they 
may organize their societies in different 
ways, they do want to maintain a national 
sovereignty, which I would regard as a great 
source of strength to us. I've had other 
disappointments but those are important. 

[9.] Q. Mr. President, in the past it 
would seem that coalition governments lean 
toward Communist control. Are we then 
taking a chance in supporting a coalition 
type government in southeast Asia? 

THE PRESIDENT. We are taking a chance 
in all of southeast Asia, and we're taking 
a chance in other areas. Nobody can make 
any predictions for the future, really, on 
any matter in which there are powerful 
interests at stake. I think, however, that 
we have to consider what our alternatives 
are, and what the prospects for war are in 
that area if we fail in our present efforts 
and the geographic problems which have to 
be surmounted in such a military engage- 
ment, where there is no easy entrance by 



18 



John F. Kennedy, 7962 



Jan. 15 [8] 



sea and where the geographic location is 
extremely a long way from us and very clo^e 
to those who might become involved. So 
that there's no easy, sure answer for Laos, 
but it is my judgment that it is in the best 
interests of our country to work for a neu- 
tral and independent Laos. We are attempt- 
ing to do that. And I can assure you that I 
recognize the risks that are involved. But I 
also think that we should consider the risks 
if we fail, and particularly of the possibility 
of escalation of a military struggle in a place 
of danger. So we're going to attempt to 
work out this matter in a way which 
permits us to try. 

[10.] Q. Mr. President, the Inter- Amer- 
ican foreign ministers are due to meet at 
Punta del Este next Monday. In advance 
of that meeting, could you tell us what kind 
of action you hope the meeting will take to 
check Castroism? 

THE PRESIDENT. Well, I think it is the 
consensus of the hemisphere that commu- 
nism is a threat; that it's sustained and sup- 
ported by alien forces; that it has no place 
in the Inter- American system; and that we 
are against dictatorships of the right and left. 
And now that the Dominican Republic is 
moving from a dictatorship of the right, we 
are hopeful that there will be — the voice of 
the hemisphere will speak against dictator- 
ships of the left which are sustained and 
supported from outside the hemisphere. 
I think that we will get that consensus. 

[11.] Q. Mr. President, the agricultural 
proposals now under preparation appear to 
involve a good deal of control of production 
and marketing by the Government. Fol- 
lowing your long conference with Secretary 
Freeman, do you now hold the view that if 
the Government is to continue farm price 
support programs, there must be control or 
management of production? 

THE PRESIDENT. Well, management — I 
think what we are attempting to do is to 
prevent the surpluses which we are able to 
produce because of the extraordinary pro- 
ductivity of our farms. I said the other day 
in the State of the Union Address that our 



per capita production has increased nearly 
100 percent in the last 10 years, which is 
faster than our consumption is increasing, 
and as we have somewhat more difficulty 
maintaining some of our markets abroad, 
in my judgment we should attempt to pro- 
vide with the support of the farmers and the 
Congress a reasonable balance which will 
protect their income. Otherwise, these sur- 
pluses will break the farmers' income, or 
they will be piled up so high in the sheds of 
the United States in storage that the whole 
program of trying to assist farmers will fall 
into discredit, and the farmer himself will be 
damaged. So what we are attempting to 
do — and this is extremely difl&cult because of 
the variety of opinions that are involved — ^is 
to try to work with the farmer and the Con- 
gress to try to bring about a balance between 
production for our domestic use, for our 
world use, for food for peace, and at the 
same time insure that the farmer's income 
will not be broken by surpluses, as it was to a 
substantial extent in the twenties. And 
that's our effort, and I think it's essential 
that we succeed if the public interest and the 
farmers are going to be protected. 

[12.] Q. Mr. President, this has to do 
with the conduct of our judicial system. In 
the last several years at least two Federal 
judges have resigned from the bench to go 
back to practice law. Since Federal judges 
are appointed for life, would you care to 
comment on the possible impact of this type 
of resignation on the judicial system, and its 
effect upon the ethical standards of the 
community? 

THE PRESIDENT. I think that the reason 
that they are appointed for life is so that 
there cannot only be no actual improprieties, 
but no appearance of improprieties. And 
while I would not make any judgment in 
the two cases you mentioned, I don't 
think that anyone should accept a Federal 
judgeship unless they're prepared to fill it 
for life, because I think the maintenance of 
the integrity of the judiciary is so important. 
So I hope that all judges will stay to the end 
of their terms. 



19 



[8] Jan. 15 



Public Papers of the Presidents 



[13.] Q. Sir, last April, during the gen- 
erals' revolt in Algeria, you made an offer, 
but it was not clear from here whether it 
was of support or offer of aid to General 
de Gaulle. If a similar instance should oc- 
cur in the near future, would you make a 
similar offer to President de Gaulle of either 
support or aid? 

THE PRESIDENT. I dou't think that you've 
described completely, precisely, the kind of 
message which I sent to General de Gaulle. 
And I think that probably proffer of assist- 
ance would not be a precise description of 
it. If we felt that — I would think it would 
be unwise to speculate about the future. 
But this was a matter which was handled 
by the French, and no request was made for 
assistance, and none was offered. 

[14.] Q. Mr. President, in the case of 
Kashmir, India has failed to keep its promise 
to hold free elections and has resorted with 
impunity in attacking Goa on Decem- 
ber 17th. Could you tell us what the United 
States could do to assure that a double 
standard of action does not arise in the 
United Nations? 

THE PRESIDENT. Well, there are several 
different questions. We are against a double 
standard of action in the United Nations, 
and I think we have attempted to make that 
clear, and that double standard goes to a 
whole variety of different things, not just 
the matters that you mentioned in your 
question. 

Now, on the matter of Kashmir, we have 
been and are concerned that an accommoda- 
tion or a solution be reached because both 
countries have numerous external and inter- 
nal problems. And we have been assisting 
both countries to build a more viable econ- 
omy and quitfe obviously everything that is 
put to arms as a result of their frictions, of 
course, takes it from the general effort, and 
we're going to continue our efforts. 

P15.] Q. Mr. President, there are two 
appeals pending in the Office of Emergency 
Planning that relate to foreign trade. One 
seeks protection for the textile industry and 
the other seeks a reduction in import re- 



strictions on residual oil. Could you tell us 
what progress is being made on these appeals 
and, in particular, if any recommendation 
has come to you? 

THE PRESIDENT. Well, we did make a rec- 
ommendation about a month ago on residual 
oil which provided for some increase in the 
amount that could be imported in, I think 
most of it from Venezuela. In the matter of 
textiles, that is one of the subjects which was 
part of our seven-point proposal to the tex- 
tile industry, that we would consider. 

We have made some progress with the 
textile industry — the voluntary agreement, 
which was made by the Under Secretary, 
Mr. Ball, which is trying to bring about a 
happier distribution of textile production in 
a way that doesn't cause dumping. I think 
that that's been a help to the textile indus- 
try — the change we made in depreciation al- 
lowances. There are other matters we're 
now looking into, and this is one of them. 
But it is a fact that the importation of textiles 
this year, which had gone from about 4 to 7 
percent from '58 to '60, was down for various 
reasons to 6 percent, so that the import situ- 
ation was somewhat eased for the textile 
industry. But to answer your question, both 
of these matters are before us. 

[16.] Q. Mr. President, criticism that we 
did not tear down the Berlin wall seems to 
be increasing rather than declining. Just 
about a week ago the Chairman of the 
Republican National Committee criticized 
your administration very strenuously. I 
don't recall that you've ever publicly dis- 
cussed this particular phase of the question. 
Do you think it would be helpful for you to 
do so now ? 

THE PRESIDENT. Well, I have discussed it. 
I stated that no one at that time in any posi- 
tion- of responsibility — and I would use that 
term — either in the West Berlin-American 
contingent, in West Germany, France, or 
Great Britain, suggested that the United 
States or the other countries go in and tear 
down the wall. 

The Soviet Union had had a de facto con 
trol for many years, really stretching back 



20 



]ohn F. Kennedy, ig62 



Jan. 15 [8] 



to the late forties in East Berlin. It had 
been turned over as a capital for East Ger- 
many a long time ago. And the United 
States has a very limited force surrounded 
by a great many divisions. We are going 
to find ourselves severely challenged to 
maintain v^hat v^e have considered to be our 
basic rights — w^hich is our presence in West 
Berlin and the right of access to West Berlin, 
and the freedom of the people of West 
BerHn. 

But in my judgment, I think that you 
could have had a very violent reaction which 
might have taken us dov^n a very rocky 
road, and I think it v^as for that reason and 
because it v^as recognized by those people 
in positions of responsibility that no recom- 
mendation was made along the lines you've 
suggested at that time. Hindsight is 

[17.] Q. It's been more than 4 months 
since the Soviets began their series of 
nuclear tests in the atmosphere, and I think 
you'd agree it would only be imprudent not 
to assume — to assume that they're not pre- 
paring further tests. Can you discuss what 
the overriding considerations are to cause 
us to give this potential enemy a gift of that 
length of time, and can you also tell us when 
we may expect a decision on your part in 
this matter of testing in the atmosphere? 

THE PRESIDENT. Well, as you know, we 
have tested underground, so that in talking 
about the gift of time, that matter should be 
taken into consideration. Secondly, of 
course, we were negotiating at the table in 
Geneva when the Soviet Union, after many 
months of preparation, began its tests. 

I have announced that we are making our 
preparations to conduct atmospheric testing 
if it's considered to be in the public interest 
when those preparations are completed. So 
that it's wholly impossible for a free country 
like the United States, with a free press, to 
prepare in secret the extensive — make ex- 
tensive preparations which would be neces- 
sary, at the same time we are conducting a 
very important and vital negotiation. So 
that the Soviet Union has that advantage. 
They have advantages as a dictatorship in 



this cold war struggle. But they have very 
serious disadvantages, and I think that we 
have to balance them one against the other. 

[18.] Q. Mr. President, during the elec- 
tion campaign you pledged that if elected 
you would issue an executive order prohibit- 
ing racial segregation in federally assisted 
housing. It's recently been reported that you 
have decided to postpone the issuance of 
such an order for some time. I wondered 
if you could give us your thinking on this 
timing question — why you want to put it off? 

THE PRESIDENT. Well, I think — I have 
stated that I would issue that order when I 
considered it to be in the public interest, and 
when I considered it to make an important 
contribution to advancing the rights of our 
citizens. I will point out that this admin- 
istration in the last 12 months made more 
progress in the field of civil rights on a 
whole variety of fronts than were made in 
the last 8 years. We have, for example, car- 
ried out a great many more suits in voting 
rights, the appointment of Federal employ- 
ees, and judges, and their employees, and 
ending segregation in interstate travel and 
terminal facilities, the ICG's work, and the 
work being done in railroad and airports, 
and we have had — at least the communities 
involved made important progress in inte- 
grating in this field. 

So we are proceeding ahead in a way 
which will maintain a consensus, and which 
will advance this cause. And I think a 
proper judgment can be made on this and 
all other matters relating to equality of rights 
at the end of this year, and at the end of our 
term. In my judgment we are going to 
make significant progress and I am fully 
conscious of the wording of the statement to 
which you refer, and plan to meet my re- 
sponsibilities in regard to this matter. 

[19.] Q. Mr. President, would you care 
to comment on how the bond issue of the 
United Nations can tip the scale in favor of 
the United States? 

THE PRESIDENT. Can do what? 

Q. Can tip the scale in favor of the United 
States. 



21 



[8] Jan. 15 



Public Papers of the Presidents 



THE PRESIDENT. I think it can help us 
strengthen the United Nations, which I 
think is in the interest of the United States, 
and I think that if we do not have a bond 
issue, or a satisfactory substitute, and I have 
not heard of one, in my judgment the U.N. 
will go, sail, into very difficult weather in 
regard to its financing, and could be on the 
verge of bankruptcy. And I think this is a 
way, along with the decision which will be 
rendered by the Court in regard to the pay- 
ment of their obligations — this is a way to 
spread the burden more equitably and insure 
the United Nations has adequate funds. 
Now, I look at what is happening in the 
Congo, where progress is being made to- 
wards the establishment of an independent 
Congo, and if Mr. Tshombe and the Prime 
Minister, based on their agreement at 
Kitona, can continue to make progress, we 
may have a real hope there. 

So in my opinion, the United Nations 
justifies the effort we put into it substan- 
tially. We rely very heavily, as I said earlier 
today, on the Secretary General in regard to 
what is happening now in western New 
Guinea and Indonesia. So that I believe in 
it strongly, and I think that this is a way to 
strengthen it which tips the scale, I think, in 
the interest of peace, and those nations that 
wish to be free. 

[20.] Q. Mr. President, this afternoon 
2,000 American women, many of them 
from distant places, demonstrated in a 
downpour in front of the White House in 
behalf of disarmament and peace. Do you 
consider this sort of demonstration useful 
and does it have an influence on you and 
other world leaders who are responsible for 
peace? 

THE pREsmENT. Well, I think these women 
are extremely earnest and that they are as 
concerned as we all are at the possibility 
of a nuclear war. They talked this morning 
to Mr. Fisher, who is the Deputy Director of 
our disarmament agency. We stressed the 
eflort we were going to put into the disarma- 
ment conference coming up in March. I saw 
the ladies myself. I recognized why they 



were there. There were a great number of 
them. It was in the rain. I understood 
what they were attempting to say, and there- 
fore I considered that their message was 
received. 

[21.] Q. Mr. President, almost precisely 
a year ago, President Eisenhower in his fare- 
well address discussed the influence of the 
military-industrial alliance in the defense 
spending program. I wonder, sir, if, in 
your first year in office, you have developed 
similar concern for this problem. 

THE PRESIDENT. I think that President 
Eisenhower commented on a matter which 
deserves continuing attention by the Presi- 
dent and also by the Secretary of Defense. 
There gets to be a great vested interest in 
expenditures because of the employment 
that is involved, and all the rest, and that's 
one of the struggles which he had and which 
we have, and I think his warning or his 
words were well taken. 

[22.] Q. Mr. President, do you have any 
comment on the recent negotiations in the 
Common Market moving into the second 
phase, their negotiations with us on agri- 
cultural products? 

THE PRESIDENT. We have had a long ne- 
gotiation, stretching back over 18 months, 
on the matter with the Common Market. 
We sent over Mr. Petersen and the Under 
Secretary of Agriculture, Mr. Murphy, in 
December. We sent them back again this 
week. ITie arrangement which has been 
developed in the last few days has improved 
our position. We always will have — and I 
believe that this is one of the arguments 
for the powers which I requested from the 
Congress — ^a difficult struggle with agricul- 
tural productivity rising in Europe, with the 
balance of agricultural trade. We are send- 
ing to the Common Market about a billion 
one hundred million and taking back about 
two hundred million from them — it's quite 
obvious that it's impossible for us to trade 
evenly with them on agriculture. 

So, therefore, we have to trade across the 
board. Given the difficulties which the 
Common Market is now running into with 



22 



John F. Kennedy, igSi 



Jan. i6 [9] 



agriculture, and which we will see more of 
when the British negotiations get advanced, 
I would think that this looks like, from all 
the information I have, this looks like the 
best arrangement that we could make and 
seems to be in the public interest and is, I 
think, on the whole, satisfactory. 

[23.] Q. Sir, there has been much to-do 
in the papers recently about memberships in 
various clubs affecting the members of your 
administration, having to do with the Cos- 
mos Club and the Metropolitan Club, with 
which you are familiar. 

Sir, do you have any particular standards 
of your own which you apply in your own 
case as to memberships in various clubs, as 
to whether they should be coeducational or 
biracial ? 

THE PRESIDENT. I have Said from the be- 
ginning that I thought this was a personal 
matter which involved not only the members 
of this Government, but involves everyone 
in the city and everyone in the country, and 
every individual must make his judgment 
in the way that he believes to be right. And 
I've stated that my application for the Cos- 



mos Club was not being renewed. 

[24.] Q. Mr. President, you did not spe- 
cifically mention doctors in your opening 
statement. If you get medicare legislation, 
where would you get the doctors, nurses, and 
hospitals to furnish the old people's needs? 

THE PRESIDENT. I was talking about sci- 
entists on this occasion, but as you know 
we have asked in the State of the Union 
Address for some assistance to medical 
schools and nursing schools. The fact of 
the matter is that our doctors are falling far 
behind the rate of increase in our population, 
and we are going to find it increasingly dif- 
ficult to serve our people well. I don't think 
the solution should be to deny medical care 
to people, however. I think we can do much 
better than that, and I would suggest that 
the best remedy would be to assist us in the 
program we recommended to strengthen our 
medical schools so we can get the doctors 
we need. 

Reporter: Thank you, Mr. President. 

note: President Kennedy's twentieth news confer- 
ence was held in the State Department Auditorium 
at 4 o'clock on Monday afternoon, January 15, 1962. 



Letter to the President of the Senate and to the Speaker of the 
House on Reorganization of the Department of the Army. 
January i6, 1962 



Dear Mr. : 

I have approved a plan for the reorganiza- 
tion of the Department of the Army. This 
plan was recommended by the Secretary of 
the Army after detailed study and approved 
by the Secretary of Defense. A copy of the 
reorganization plan is enclosed herewith. 

I am also enclosing for transmission to the 
Chairman of the Armed Services Committee 
a communication from the Secretary of De- 
fense reporting, pursuant to section 202(c) 
(i) of the National Security Act of 1947, as 
amended, the action to be taken with refer- 
ence to abolition of certain statutory officers 
and the transfer of their' functions to the 
Secretary of the Army. 

Sincerely, John F. Kennedy 



note: This is the text of identical letters addressed 
to the Honorable Lyndon B. Johnson, President of 
the Senate, and to the Honorable John W. 
McCormack, Speaker of the House of Represent- 
atives. 

As oudined in the committee print "Reorganiza- 
tion of the Department of the Army" (Hearing 43, 
House Committee on Armed Services, Feb. 5, 1962) 
the key features of the plan are as follows: 

1 . Creation of a Materiel Development and Logistic 
Command. 

2. Establishment of an Army Combat Develop- 
ments Command. 

3. Assignment to the U.S. Continental Army Com- 
mand of responsibility for all individual and unit 
training throughout the Army, except certain. highly 
specialized training such as the Military Academy 
and Army War College. 

4. Transfer of certain operating functions of the 
Army General Staff to the new commands and 
agencies to be created. 



23 



[9] Jan. 16 



Public Papers of the Presidents 



5. Establishment of an Office of Personnel Opera- 
tions. 

6. Realinement of the Army Special Staff and 
Operating Agencies. 

The proposal also calls for the elimination of the 
following officers created by statute and for the 



transfer of their functions to the Secretary of the 
Army: Chief Signal Officer, Chief of Finance, Adju- 
tant General, Quartermaster General, Chief of 
Ordnance, Chief Chemical Officer, Chief of Trans- 
portation. The reorganization became effective on 
February 16, 1962. 



10 Statement by the President at a Meeting of the Business Ethics 
Advisory Council. January i6, 1962 



I HAVE REVIEWED with Secretary 
Hodges the report and progress you have 
made in the development of a program to 
stimulate and assist business leaders and 
trade association groups in attaining high 
ethical standards, and I am delighted. 

But your statement of principles can only 
be a beginning. In the last analysis, high 
ethical standards can be achieved only 
through voluntary effort. The principles 
you have oudined v^ill establish guideposts, 
give direction and help w^hole industries 
and companies to initiate codes and 
standards. 

I am confident that American business 
w^ill respond, but in addition to helping busi- 
nessmen, your v^ork should assist the gen- 
eral public to achieve a broader understand- 
ing of these problems — for ethics is a matter 
of concern to us all. 



The free v^orld v^atches us closely for 
leadership in this field, the uncommitted 
nations seek examples of the free enterprise 
system in operation, and the Communist 
nations are looking for vulnerable points 
of attack. I knov^ that you v^ill bear all this 
in mind. 

It is good to know^ that this group of dis- 
tinguished business leaders, educators and 
clergymen has undertaken this important 
task. I am looking forward to seeing con- 
tinued reports of progress by this Council. 

note: The Business Ethics Advisory Council, an- 
nounced by the Secretary of Commerce on May i6, 
1 96 1, was established for the purpose of exploring 
approaches to the development of ethical guidelines 
that might be useful to the business community. 
The Council's first report, entitled "A Statement on 
Business Ethics and a Call for Action With Some 
Questions for Businessmen," is printed as a Depart- 
ment of Commerce pamphlet (lo pp.). 



1 1 Statement by the President in Response to Report of the 
Committee on Traffic Safety. January 17, 1962 



MY EARNEST HOPE is that the Presi- 
dent's Committee for Traffic Safety may 
take the lead in bringing about broader 
and more intensive traffic safety activity 
during 1962. 

We must exert every effort to improve 
traffic conditions w^hich today are resulting 
every year in some 38,000 deaths, 1^/2 mil- 
lion serious injuries and billions of dollars 
of property loss. 

I am heartened to learn that the states are 
moving ahead to utilize Public Law^ 85- 
684 — ^the Beamer Resolution — vi^hich grants 
congressional consent in advance to inter- 
state compacts whose purpose is to promote 



safety on the highw^ays. In adopting this 
law, the Congress, in effect, reaffirmed the 
principle that primary responsibility for traf- 
fic safety meets with the state. 

I believe strongly in keeping responsibility 
for traffic safety with state and local officials. 
But, only by interstate cooperation can we 
deal effectively with motor vehicle travel that 
becomes increasingly interstate in . nature. 
So I hope that the states will take full advan- 
tage of compact agreements to move forward 
in the interests of uniformity and safety. 

I have also been glad to note the increas- 
ing participation by the states in the Federal 
Driver License Register, which serves as a 



24 



John F. Kennedy, 7962 



Jan. 18 [13] 



clearing house for identifying drivers whose 
licenses have been revoked or suspended for 
certain serious traffic offenses. 

And, I am encouraged by the increasing 
safety research activities of the Department 
of Health, Education, and Welfare, and by 
the creation of the Office of Highv^ay Safety 
in the Bureau of Public Roads. These de- 



velopments indicate a growing awareness 
of how the Federal Government can help 
states and citizens do a better job in traffic 
accident prevention. 

note: a summary report in the form of a letter to 
the President from William R. Hearst, Jr., Chair- 
man of the Committee, was released by the White 
House on the same day. 



12 Remarks Upon Signing Orders Relating to Personnel 
Management in the Federal Service. January 17, 1962 



YESTERDAY v^as the 79th anniversary of 
the enactment of the Civil Service Act, and 
I am hopeful that the things that w^e are 
doing today will also be a source of strength 
to the entire Federal civil service. 

The task force recommendations are being 
put into effect by these executive orders and 
I think they have steered a proper course. 
The public interest remains the dominant 
consideration, administering Federal em- 
ployee-management relations, and proper 
management responsibilities have been re- 
tained and strengthened and v^ill be by this 
executive order. 

Within that framew^ork, these orders de- 
fine and provide a legal base for the rights 
of Federal employees and employee orga- 
nizations to participate in improving person- 
nel policies and working conditions not 
specifically fixed by the Congress. 

I want to thank all those who helped in 
the development of this program, and I am 
delighted that there are Members of the 
Congress here who have been concerned 
about this matter for many years, and also 
representatives of the employee organiza- 
tions within the Federal Government. And 
I want to assure you that it is our aim, as 



President — and I think it is the aim of all 
those in positions of responsibility in the 
Federal Government, as an employer of two 
million, three hundred thousand civilian em- 
ployees, to achieve maximum efficiency. 

The temporary committee created by the 
order to implement the program, will indi- 
cate the necessary steps to launch this project, 
and I am confident that the program will 
result in improved relations between man- 
agement and employees in the Federal 
service. 

I am also glad to have our visitors from 
Vienna, Austria, here — the President of the 
Austrian Trade Union Federation — glad you 
are taking part in this ceremony. 

note: The President's remarks followed the sign- 
ing of Executive Order 10987, "Agency Systems for 
Appeals from Adverse Actions," and Executive Or- 
der 10988, "Employee-Management Cooperation in 
the Federal Service" (27 F.R. 550, 551). 

The task force referred to in the second paragraph 
was established by the President on June 22, 1961, to 
review and advise on employee-management rela- 
tions in the Federal service. Its recommendations 
were submitted on December 5, 1961 (see 1:961 
volume, this series, p. 769). 

In closing, the President referred to Franz Olah, 
President of the Austrian Trade Union Federation. 



13 Annual Budget Message to the Congress, Fiscal Year 1963. 
January 18, 1962 



To the Congress of the United States: 

I present with this message my budget 
recommendations for the fiscal year 1963, 
beginning next July 1. 



This is the first complete budget of this 
administration. It has been prepared with 
two main objectives in mind: 

First, to carry forward efficiently the 



715-405 O— 64- 



25 



[i3] Jan. i8 



Public Papers of the Presidents 



activities — ranging from defense to postal 
services, from oceanographic research to 
space exploration — vv^hich by national con- 
sensus have been assigned to the Federal 
Government to execute; 

Second, to achieve a financial plan — a 
relationship betv^een receipts and expendi- 
tures — v^hich will contribute to economic 
grow^th, high employment, and price sta- 
bility in our national economy. 

Budget expenditures for fiscal 1963 wAl 
total $92.5 billion under my recommenda- 
tions — an increase of $3.4 billion over the 
amount estimated for the present fiscal year. 
More than three-quarters of the increase is 
accounted for by national security and space 
activities, and the bulk of the remainder by 
fixed interest charges. 

Because of the increasing requirements for 
national security, I have applied strict stand- 
ards of urgency in reviev^ing proposed ex- 
penditures in this budget. Many desirable 
new projects and activities are being de- 
ferred. I am, moreover, recommending legis- 
lation which will reduce certain budgetary 
outlays, such as the postal deficit and the cost 
of farm price and production adjustments. 



It would not, of course, be sensible to defer 
expenditures which are of great significance 
to the growth and strength of the Nation. 
This budget therefore includes a number 
of increases in existing programs and some 
new proposals of high priority — such as 
improvements in education and scientific 
research, retraining the unemployed and 
providing young people with greater em- 
ployment opportunities, and aid to urban 
mass transportation. 

Budget receipts in fiscal year 1963 are 
estimated to total $93 billion, an increase 
of $10.9 billion over the recession-affected 
level of the present fiscal year. These re- 
ceipts estimates are based on the expectation 
that the brisk recovery from last year's reces- 
sion will continue through the coming year 
and beyond, carrying the gross national 
product during calendar 1962 to a record 
$570 billion. 

The administrative budget for 1963 thus 
shows a modest surplus of about $500 mil- 
lion. Federal accounts on the basis of the 
consolidated cash statement — combining the 
administrative budget with other Federal 
activities, mainly the social security, high- 



SUMMARY OF FEDERAL FINANCES 

[ Fiscal years. In billions ] 

Description 1959 i960 1961 1962 1963 

Administrative budget: actual actual actual estimate estimate 

Budget receipts $67. 9 $77- 8 $77- 7 $82. i $93. o 

Budget expenditures 80. 3 76. 5 81.5 89. i 92. 5 

Budget surplus (-f) or deficit (— ) -—12.4 +1.2 —3-9 — 7- -fo. 5 

Consolidated cash statement: 

Receipts from the public 81.7 95.1 97.2 102.6 116. 6 

Payments to the public 94-8 94-3 99-5 m.i 114-8 

Excess of receipts ( + ) or payments (— ) — 13- i +o- 8 —2. 3 —8. 5 -\-i. 8 

National income accounts — Federal sector: 

Receipts 85.4 94.1 94-8 105.6 116. 3 

Expenditures 90-2 91- 9 97-0 106. i 111.9 

Surplus ( + ) or deficit ( — ) —4- 8 H-2. 2 —2.2 —0.5 -f 4. 4 

New obligational authority (administrative budget) 81. 4 79. 6 86. 7 95. 7 99. 3 

Public debt, end of year 284. 7 286. 3 289. 295. 4 294. 9 

26 



John F. Kennedy, 1962 



Jan. 18 [13] 



way, and other trust funds — show an esti- 
mated excess of receipts from the public of 
$1.8 billion over payments to the public. 
And in the terms in which our national in- 
come accounts are calculated — using accrued 
rather than cash receipts and expenditures, 
and including only transactions directly af- 
fecting production and income — the Federal 
surplus is estimated at $4.4 billion. 

By all three measures in current use, 
therefore, the Federal Government is ex- 
pected to operate in 1963 with some surplus. 
This is the policy which seems appropriate 
at the present time. The economy is mov- 
ing strongly forward, with employment and 
incomes rising. The prospects are favor- 
able for further rises in the coming year in 
private expenditures, both consumption and 
investment. To plan a deficit under such 
circumstances would increase the risk of 
inflationary pressures, damaging alike to our 
domestic economy and to our international 
balance of payments. On the other hand, 



we are still far short of full capacity use of 
plant and manpower. To plan a larger sur- 
plus would risk choking off economic re- 
covery and contributing to a premature 
downturn. 

Under present economic circumstances, 
therefore, a moderate surplus of the magni- 
tude projected above is the best national 
policy, considering all of our needs and 
objectives. 

BUDGET EXPENDITURES 

The total of budget expenditures — esti- 
mated at $92.5 billion in fiscal 1963 — is de- 
termined in large measure by the necessary 
but costly programs designed to achieve our 
national security and international objectives 
in the current world situation. Expendi- 
tures for national defense, international, and 
space programs account for more than three- 
fifths of total 1963 budget outlays, and for 
more than three-fourths of the estimated in- 
crease in expenditures in 1963 as compared 



BUDGET EXPENDITURES 

[ Fiscal years. In billions ] 

1961 

Function actual 

National defense $47- 5 

International affairs and finance 2.5 

Space research and technology .7 

Subtotal 50. 7 

Interest 9- o 

Domestic civil functions: 

Agriculture and agricultural resources 5-2 

Natural resources 2. 

Commerce and transportation 2.6 

Housing and community development .3 

Health, labor, and welfare 4-2 

Education -9 

Veterans benefits and services 5-4 

General government i • 7 

Subtotal, domestic civil functions 22. 4 

Civilian pay reform •• • • 

AUovi^ance for contingencies • •• • 

Deduct interfund transactions -7 

Total budget expenditures 81.5 



1962 


1963 


estimate 


estimate 


$51.2 


$52.7 


2.9 


3.0 


1-3 


2.4 



55-4 


58.1 


9.0 


9.4 


6.3 


5.8 


2. 1 


2.3 


2.9 


2.5 


•5 


.8 


4.7 


' 5.1 


I. I 


1-5 


5.6 


5-3 


1.9 


2.0 


25.3 


25.4 




. 2 


. I 


. 2 


•7 


.7 



89. I 92. 5 

27 



[i3] Jan. i8 



Public Papers of the Presidents 



to 1962. Indeed, apart from the expected 
increase in interest payments, expenditures 
for the so-called "domestic civil" functions 
of government have been held virtually 
stable between 1962 and 1963. 

Within this total there are important shifts 
in direction and emphasis. Expenditures 
for agricultural programs, for the postal defi- 
cit, and for temporary extended unemploy- 
ment compensation are expected to drop. 
The fact that funds for these purposes can 
be reduced permits us to make increases in 
other important areas — notably education, 
health, housing, and natural resource devel- 
opment — w^ithout raising significandy total 
expenditures for domestic civil functions. 

NATIONAL DEFENSE. — ^This budget Carries 
forw^ard the policies instituted w^ithin the 
past 12 months to strengthen our military 
forces and to increase the flexibility with 
which they can be controlled and applied. 
The key elements in our defense program 
include: a strategic offensive force which 
would survive and respond overwhelmingly 
after a massive nuclear attack; a command 
and control system which would survive and 
direct the response; an improved anti-bomber 
defense system; a civil defense program 
which would help to protect an important 
proportion of our population from the perils 
of nuclear fallout; combat-ready limited war 
forces and the air and sealift needed to move 
them quickly to wherever they might have 
to be deployed; and special forces to help our 
allies cope with the threat of Communist- 
sponsored insurrection and subversion. 

Increases in expenditures for the Nation's 
defense are largely responsible for the rise in 
the budget of this administration compared 
to that of its predecessor. For fiscal years 
1962 and 1963, expenditures for the military 
functions of the Department of Defense are 
estimated at about $9 billion higher, and new 
obligational authority at $12 to $15 billion 
more, than would have been required to 
carry forward the program as it stood a year 
ago. 

For the coming year, the budget provides 
for further significant increases in the capa- 



bilities of our strategic forces, including 
additional Minuteman missiles and Polaris 
submarines. These forces are large and 
versatile enough to survive any attack which 
could be launched against us today and strike 
back decisively. The programs proposed in 
this budget are designed to assure that we 
will continue to have this capability in the 
future. This assurance is based on an ex- 
haustive analysis of all the available data on 
Soviet military forces and the strengths and 
vulnerabilities of our own forces under a 
wide range of possible contingencies. 

To strengthen the defenses of the North 
American Continent, this budget proposes 
additional measures to increase the effective- 
ness of our anti-bomber defense system, con- 
tinued efforts to improve our warning of 
ballistic missile attack, and further research 
and development at a maximum rate on 
anti-missile defense possibilities. 

The budget for the current year provides 
for identifying and marking available civil- 
ian shelter space for approximately 50 mil- 
lion people. This phase of the civil defense 
program is proceeding ahead of schedule. 
For 1963, I am requesting nearly $700 mil- 
lion for civil defense activities of the De- 
partment of Defense, including $460 million 
for a new cost-sharing program with State 
and local governments and private organiza- 
tions to provide shelters in selected com- 
munity buildings, such as schools and 
hospitals. 

Although a global nuclear war poses the 
gravest threat to our survival, it is not the 
most probable form of conflict as long as we 
maintain the forces needed to make a nu- 
clear war disastrous to any foe. Military 
aggression on a lesser scale is far more likely. 
If we are to retain for ourselves a choice 
other than a nuclear holocaust or retreat, 
we must increase considerably our conven- 
tional forces. This is a task we share with 
our free world allies. 

The budget recommendations for 1963 
are designed to strengthen our conventional 
forces substantially. I am proposing: 

An increase in the number of regular 



28 



John F. Kennedy, 7962 



Jan. 18 [13] 



Army divisions from 14 to 16. The two 
new divisions would replace the two Na- 
tional Guard divisions now on active duty 
and scheduled to return to reserve status 
prior to October 1962. 

A substantial increase in the number of 
regular tactical fighter units of the Air Force 
and in the procurement of new fighter and 
reconnaissance aircraft. These steps will 
provide more effective air support for our 
ground forces. 

Revision of the programs for organization 
and training of the reserve components so 
they will be better adapted and better pre- 
pared to serve in any emergency which re- 
quires mobilization. 

Significant increases in procurement for 
all of our conventional forces. These forces 
must be equipped and provisioned so they 
are ready to fight a limited war for a pro- 
tracted period of time anywhere in the 
world. 

INTERNATIONAL AFFAIRS AND FINANCE. A 

significant change has taken place in our 
international assistance programs in recent 
years. Military assistance expenditures are 
declining to an estimated $1.4 billion in 1963 
compared with $2.2 billion 5 years earlier. 
The more industrialized European countries 
have- almost completely taken over the cost 
of their own armament. In less developed 
countries, the military assistance program 
continues to provide essential maintenance, 
training, and selective modernization of 
equipment, with increased emphasis on in- 
ternal security, including anti-guerrilla war- 
fare. 

On the other hand, expenditures for eco- 
nomic and financial assistance to the devel- 
oping nations of the world have been increas- 
ing and are estimated at $2.5 billion in 1963. 
These expenditures, largely in the form of 
loans, will rise further in later years as de- 
velopment loan commitments being made 
currendy are drawn upon. A corresponding 
increase is taking place in the contributions 
of other industrialized countries. 

The new Agency for International Devel- 
opment has been providing needed leader- 



ship in coordinating the various elements of 
our foreign aid programs throughout the 
world. A consistent effort is being made to 
relate military and economic assistance to the 
overall capabilities and needs of recipient 
countries to achieve economic growth and 
sustain adequate military strength. To 
make our assistance more effective, increas- 
ing emphasis is being placed on self-help 
measures and necessary reforms in these 
countries. The authority provided last year 
to make long-term loan commitments to de- 
veloping countries will bd of invaluable 
assistance to orderly long-range planning. 
Efforts will also be made to foster more 
effectively the contribution of private enter- 
prise to development, through such means 
as investment guarantees and assistance for 
surveys of investment opportunities. 

In August 1961, the United States formally 
joined with its neighbors to the south in the 
establishment of the Alliance for Progress, 
an historic cooperative effort to speed the 
economic and social development of the 
American Republics. For their part, the 
Latin American countries agreed to under- 
take a strenuous program of social and eco- 
nomic reform and development through this 
decade. As this program of reform and de- 
velopment proceeds, the United States is 
pledged to help. To this end, I am propos- 
ing a special long-term authorization for 
$3 billion of aid to the Alliance for Progress 
within the next 4 years. In addition, sub- 
stantial continued development loans are 
expected from the Export-Import Bank and 
from U.S. funds being administered by the 
Inter-American Development Bank. These, 
together with the continued flow of agricul- 
tural commodities under the Food for Peace 
program, will mean support for the Alliance 
for Progress in 1963 substantially exceeding 
$1 billion. 

SPACE RESEARCH AND TECHNOLOGY. LaSt 

year I proposed and the Congress agreed 
that this Nation should embark on a greater 
effort to explore and make use of the space 
environment. This greater effort will re- 
sult in increased expenditures in 1962 and 



29 



[i3] Jan. i8 



Public Papers of the Presidents 



1963, combined, of about $1.1 billion above 
what they would have been under the 
policies of the preceding administration; 
measured in terms of new obligational au- 
thority, the increase is $2.4 billion for the 2 
years. With this increase in funds there 
has been a major stepup in the programs of 
the National Aeronautics and Space Ad- 
ministration in such fields as communica- 
tions and meteorology and in the most 
dramatic effort of all — mastery of space 
symbolized by an attempt to send a man to 
the moon and back safely to earth. 

Action is being taken to develop the com- 
plex Apollo spacecraft in which the manned 
lunar flights will be made, and to develop 
the large rockets required to boost the space- 
craft to the moon. The techniques of 
manned space flight, particularly those of 
long-term flight and of rendezvous between 
two spacecraft in earth orbit, are being 
studied both in ground research and in new 
flight programs. 

Our space program has far broader sig- 
nificance, however, than the achievement of 
manned space flight. The research effort 
connected with the space program — and 
particularly the tremendous technological 
advances necessary to permit space flight — 
will have great impact in increasing the 
rate of technical progress throughout the 
economy. 

DOMESTIC CIVIL FUNCTIONS. — Despite the 
necessary heavy emphasis we are giving to 
defense, international, and space activities, 
the budget reflects many important proposals 
to strengthen our national economy and 
society. It has been possible to include these 
proposals without any substantial increase 
in the total cost of domestic civil functions 
mainly because of proposed reductions in 
postal and agricultural expenditures. Some 
of the more important proposals in domestic 
civil programs are mentioned below. 

Agriculture and agricultural resources. — 
In the development of farm programs we 
are striving to make effective use of Amer- 
ican agricultural abundance, to adjust farm 
production to bring it in line with domestic 



and export requirements, and to maintain 
and increase income for those who are en- 
gaged in farming. The steps taken thus 
far, including the temporary wheat and feed 
grain legislation enacted in the last session 
of the Congress, contributed significandy 
to the rise in farm income last year and to 
some reduction — the first in 9 years — in 
surplus stocks. However, new long-range 
legislation is needed to permit further adap- 
tation of our farm programs to the rapidly 
increasing productive efficiency in agricul- 
ture and to avoid continuing high budgetary 
costs. The reduction in agricultural ex- 
penditures in this budget (from $6.3 billion 
in 1962 to $5.8 billion in 1963) reflects the 
proposals to this end which I shall be pre- 
senting to the Congress in a special message. 

The 1963 budget also provides for expan- 
sion of the food stamp plan into additional 
pilot areas, and for a substantial increase in 
Rural Electrification Administration loan 
funds — to permit financing of additional 
generation and transmission facilities where 
that is necessary. The adequacy of the funds 
recommended will depend on the willing- 
ness of other power suppliers to meet the 
requirements of the rural electric coopera- 
tives on a reasonable basis. 

Natural resources. — Estimated expendi- 
tures of $2.3 billion in this budget for the 
conservation and development of our natural 
resources are higher than in any previous 
year. 

The 1963 budget makes provision for the 
Corps of Engineers, the Bureau of Reclama- 
tion, and the Tennessee Valley Authority to 
start construction on 43 new water resources 
projects with an estimated total Federal cost 
of $600 million. The long-range programs 
for the national parks and forests are also 
being strengthened. 

One of our most pressing problems is the 
adequate provision of outdoor recreational 
facilities to meet the needs of our expanding 
population. The Federal Government, State 
and local agencies, and private groups must 
all share in the solution. By the end of this 
month the comprehensive report of the 



30 



John F. Kennedy, 7962 



Jan. 18 [13] 



Outdoor Recreation Resources Review Com- 
mission is expected to be available. The 
Secretary of the Interior, at my request, is 
preparing a plan for the Federal Govern- 
ment to meet its share of the responsibility 
for providing outdoor recreational oppor- 
tunities, including those related to fish and 
wildlife. 

Commerce and transportation. — Budget 
expenditures for commerce and transporta- 
tion programs are estimated to decline from 
$2.9 billion in 1962 to $2.5 billion in 1963. 
This decline reflects mainly a drop of $592 
million for the postal service, based on my 
legislative proposal to increase postal rates 
to a level that will cover the costs of postal 
operations, except for those services properly 
charged to the general taxpayer. 

Oudays for the Federal-aid highway pro- 
gram are financed almost entirely through 
the highway trust fund and are not included 
in the budget total. Combined, Federal 
budget and trust fund expenditures for 
commerce and transportation programs in 
1963 will amount to almost $6 billion. 

Substantially increased expenditures are 
provided in the 1963 budget for the new 
program to assist the redevelopment of areas 
with persistent unemployment and under- 
employment and for the expanding develop- 
ment and operation of the Federal airways 
system. 

Housing and community development, — 
The long strides forward in housing and 
community development programs author- 
ized by the Housing Act of 1961 are making 
it possible to accelerate progress in renewing 
our cities, in financing needed public facili- 
ties, in preserving open space, and in sup- 
plying housing accommodations, both 
public and private, within the means of 
low- and middle-income families and elderly 
people. The major new proposal I expect 
to make in this field will extend the au- 
thority for Federal aids to urban mass 
transportation. 

Health, labor, and welfare, — Budget ex- 
penditures for health, labor, and welfare 
programs are estimated at $5.1 billion and 



trust fund expenditures at $21.6 billion in 
1963. The budget includes increased funds 
for health research and for a major strength- 
ening of the programs of the Public Health 
Service, the Office of Vocational Rehabili- 
tation, and the Food and Drug Administra- 
tion. The budget and trust accounts also 
reflect the legislative recommendations 
which are pending in the Congress to pro- 
vide a substantial increase in aid for medical 
education and to enact health insurance for 
the aged through social security. 

I have given particular attention in this 
budget to strengthening the labor and man- 
power functions of the Department of Labor 
and related agencies. In addition to in- 
creased funds for the United States Employ- 
ment Service and for other existing Federal 
programs, the budget includes funds for the 
urgendy needed legislation providing for 
Federal aid for training or retraining unem- 
ployed workers, and for the training of our 
young people through an experimental 
youth employment opportunities program. 

Many American families rely for help 
and for a new start in life upon the public 
assistance programs. Yet these programs 
frequently lack both the services and the 
means to discharge their purpose construc- 
tively. This budget includes substantial 
increases for public assistance. I am also 
proposing a significant modernization and 
strengthening of the welfare programs to 
emphasize those services which can help 
restore families to self-sufficiency. 

Education. — Expenditures for existing 
and proposed education programs are esti- 
mated to be $1.5 billion in 1963, an increase 
of $327 million over 1962. A strong edu- 
cational system providing ready access for 
all to high quality free public elementary and 
secondary schools is indispensable in our 
democratic society. Moreover, able stu- 
dents should not be denied a higher educa- 
tion because they cannot pay expenses or 
because their community or State cannot 
afford to provide good college facilities. 
This budget therefore includes funds for the 
legislative recommendations pending before 



31 



[13] Jan. i8 



Public Papers of the Presidents 



the Congress to provide loans for the con- 
struction of college academic facilities and 
funds for college scholarships, and assistance 
to public elementary and secondary educa- 
tion through grants for the construction 
of classrooms and for teachers' salaries. 
The budget also includes funds for a new 
program of financial aid to improve the 
quality of education by such means as 
teacher training institutes. Continuing our 
policy of building the research effort of the 
Nation, funds are recommended for the Na- 
tional Science Foundation to expand sup- 
port for basic research and the construction 
of research facilities, particularly at colleges 
and universities, and to strengthen programs 
in science education. 

Veterans benefits and services, — Our first 
concern in veterans programs is that ade- 
quate benefits be provided for those disabled 
in the service of their country. The last 
increase in compensation rates for service- 
disabled veterans w^as enacted in 1957. To 
offset increases in the cost of living since that 
time, I again recommend that the Congress 
enact legislation to establish higher rates, 
particularly for the severely disabled. The 
1963 budget provides $64 million for this 
proposal. 

NEW^ OBLIGATIONAL AUTHORITY 

Before Federal funds can be spent, the 
Congress must enact authority for each 
agency to incur financial obligations. For 
the current year, it novv^ appears that $3.8 
billion of new^ obligational authority over the 
amount already enacted w^ill be required. 
Of this amount, $2 billion represents standby 
authority for lending in case of need to the 
International Monetary Fund — in accord- 
ance v^ith the recently concluded agreement 
under v^hich other countries v^ill make avail- 
able tv^ice this amount of standby authority. 
This vv^ill make a total of $95.7 billion of nev^ 
obligational authority for fiscal 1962. 

For 1963, my recommendations for nevv^ 
obligational authority total $99.3 billion. 
This includes substantial sums needed for 



forw^ard funding of programs — such as those 
of the Department of Defense and the Na- 
tional Aeronautics and Space Administra- 
tion — under which commitments are made 
in one year and expenditures often occur in 
later years. 

BUDGET RECEIPTS 

The estimate of budget receipts for fiscal 
year 1963 rests on projections of economic 
recovery and growth which will be discussed 
in the Economic Report. In brief, the reve- 
nue estimates are based on the assumption 
that the gross national product will rise from 
$521 billion in the calendar year 196 1 to $570 
billion in calendar 1962. At this level of 
output, corporate profits in calendar 1962 
would be about $56.5 billion and personal 
income about $448 billion. These figures do 
not reflect the additional stimulus which 
would be given to investment and incomes 
in the economy by the investment tax credit 
now pending before the Congress. 

Since the spring of calendar year 1961, the 
average gain in gross national product has 
been about 2!^% per quarter. The eco- 
nomic assumptions underlying the budget 
estimates will be realized with a somewhat 
more modest rate of gain of approximately 
2% per quarter. This pace of advance 
would reduce the rate of unemployment to 
approximately 4% of the civilian labor force 
by the end of fiscal 1963. 

There are, of course, uncertainties in any 
estimates of economic developments so far 
ahead. If private demand gains greater 
strength than we now foresee and the cur- 
rent expansion accelerates, there would be a 
larger Federal surplus, which would be a 
valuable means of restraining potential in- 
flationary pressures. If, on the other hand, 
the economic recovery unexpectedly halts or 
is reversed, revenues would fall below the 
current estimates and a deficit would in- 
evitably result, moderating the economic 
slowdown. 

Aside from revenue gains based on eco- 
nomic expansion, there will be larger rev- 
enue collections as a result of strengthening 



32 



John F. Kennedy, 7962 



Jan. 18 [13] 



BUDGET RECEIPTS 

[ Fiscal years. In billions ] 

1961 

Source actual 

Individual income taxes $41. 3 

Corporation income taxes 21.0 

Excise taxes 9.1 

Estate and gift taxes 1.9 

Customs 1 . 

Miscellaneous receipts 4.1 

Total 78. 3 

Deduct interfund transactions .7 

Total budget receipts 77. 7 



1962 
estimate 


1963 
estimate 


$45.0 


$49.3 


21.3 


26.6 


9.6 


10. 


2. I 


2.3 


I. 2 


1-3 


3.5 
82.8 


4.2 
93.7 


.7 
82.1 


.7 
93.0 



the Internal Revenue Service Wixh. addi- 
tional enforcement personnel. Collections 
are estimated to be increased $300 million 
during 1963 because of this efiEort. 

Tax reform proposals. — Extensive and 
careful consideration has already been given 
to the proposals enumerated in my special 
tax message to the Congress last April. 
These tax reform proposals, as I noted last 
year, represent a first step in improving our 
tax system. The House Committee on 
Ways and Means has made action on a 
similar set of recommendations its first order 
of business this year. I hope they will be 
enacted early in this session. 

I particularly urge enactment of the tax 
credit for investment in depreciable equip- 
ment. The 8% credit as formulated by the 
Committee on Ways and Means, together 
v^ith administrative revision of guidelines 
for depreciation now underway, will en- 
courage modernization of productive equip- 
ment in private industry desirable alike to 
improve the Nation's potential for economic 
growth and the ability of our producers to 
compete with those abroad. 

Any net reduction in fiscal 1963 revenues 
resulting from adoption of the investment 
credit is expected to be offset by additional 
revenues resulting from the enactment of 
measures to remove defects and inequities 
in the tax structure, including: 

Corrective legislation with respect to the 
tax treatment of gains on depreciable prop- 
erty, including both real and personal prop- 



erty, which would prevent abuses that now 
occur and permit greater flexibility in the 
rules for salvage value in determining 
depreciation. 

A system of tax withholding on dividend 
and interest income, needed to overcome 
the serious loss of revenue and the unfair- 
ness resulting from the failure of some in- 
dividuals to report these types of income on 
their tax returns. 

Repeal of the exclusion from an individ- 
ual's taxable income of the first $50 of divi- 
dends and the credit against tax of 4% of 
additional dividends. 

Statutory provisions to cope with the prob- 
lem of business deductions for entertain- 
ment and gifts and other expense account 
items. 

Legislation to eliminate unwarranted tax 
preferences now received by several special 
types of institutions. Earnings of coopera- 
tives reflecting business activities should be 
currendy taxed either to the cooperatives or 
to the patrons; special provisions now ap- 
plicable to mutual fire and casualty insur- 
ance companies should be repealed; and the 
tax deductible reserve provisions applicable 
to mutual savings banks and savings and 
loan associations should be amended to as- 
sure nondiscriminatory taxation among 
competing financial institutions. 

Revision of the tax treatment of foreign 
income to serve the overall objective of tax 
neutrality between domestic and foreign 
operations. This requires eliminating tax 



33 



[i3] Jan. i8 



Public Papers of the Presidents 



deferral privileges except in less-developed 
countries, and tightening up on other prefer- 
ences given to foreign income under exist- 
ing lav^. These involve (a) tax haven 
operations, (b) taxation of foreign invest- 
ment companies, (c) taxation of American 
citizens w^ho are resident abroad, (d) estate 
tax on real property abroad, (e) computa- 
tion of allowances for foreign tax credits on 
dividends, and (f ) taxation of foreign trusts. 

Extension of present tax rates. — The 
budget outlook for 1963 requires that the 
present tax rates on corporation income and 
certain excises be extended for another year 
beyond their scheduled expiration date of 
June 30, 1962. Existing law calls for 
changes which would lower the general 
corporation income tax rate from 52% to 
47%; reduce the excise rates on distilled 
spirits, beers, wines, cigarettes, passenger 
automobiles, and automobile parts and ac- 
cessories; and allow the tax on general tele- 
phone services to expire. I recommend post- 
ponement of these changes for another year 
to prevent a revenue loss of $2.8 billion in 
1963. 

Transportation tax and user charges. — 
Under existing law, the 10% tax on trans- 
portation of persons is scheduled for reduc- 
tion to 5% on July I, 1962. This tax poses 
special problems for common carriers which 
must compete with private automobiles not 
subject to the tax. At the same time it is 
clearly appropriate that passengers and ship- 
pers who benefit from special Government 
programs should bear a fair share of the 
costs of these programs. 

Accordingly, I recommend that the pres- 
ent 10% tax as it applies to passenger trans- 
portation other than by air be repealed effec- 
tive July I, 1962. I also recommend enact- 
ment of new systems of user charges for 
commercial and general aviation and for 
transportation on inland waterways. 

More specifically, I recommend that the 
following user charges be enacted, effective 
January i, 1963, with the receipts to be re- 
tained in the general fund: (a) a 5% tax 



on airline tickets and on airfreight waybills; 
(b) a 2-cents-per-gallon tax on all fuels used 
in commercial air transportation, including 
jet fuels; and (c) a 3-cents-per-gallon tax on 
all fuels used in general aviation. The 
January i, 1963, effective date will allow 
time for review by the Civil Aeronautics 
Board of fare adjustments that might be re- 
quired by these user charges. Pending the 
proposed tax changes, the present 10% tax 
on air transportation and the 2-cents-per- 
gallon aviation gasoline tax should be con- 
tinued until December 31, 1962. 

To extend the principle of user charges to 
inland waterways, a tax of 2 cents per 
gallon should be applied to all fuels used 
in transportation on these waterways, effec- 
tive January i, 1963. 

PUBLIC DEBT 

Changes in the public debt from year to 
year reflect mainly the amount of the budget 
surplus or deficit. With a budget surplus 
of $500 million proposed for 1963, the public 
debt on June 30, 1963, is expected to be 
$294.9 billion compared with $295.4 billion 
at the end of the current year. 

The limit on the public debt now stands 
at $298 billion until June 30, 1962, after 
which the permanent ceiling of $285 billion 
again becomes effective. The present tem- 
porary limit was established last June before 
the Berlin situation required additional 
defense expenditures which used up the 
margin of flexibility included in the $298 
billion limit. 

The current limit would impose serious 
operating difficulties on the Treasury during 
the remainder of fiscal 1962. The critical 
stage in functioning under the present limit 
is upon us and the Treasury is without any 
margin to meet unexpected contingencies. 
Although the total debt will decline to $295.4 
billion after the receipt of taxes in June, 
customary seasonal patterns of expendi- 
tures in excess of receipts can be expected to 
raise the total debt above the present $298 



34 



John F. Kennedy, 7962 



Jan. 18 [13] 



PUBLIC DEBT 

[ Fiscal years. In billions ] 

1961 

Description actual 

Public debt at start o£ year $286. 3 

Change due to budget deficit ( + ) or surplus (— ) +3. 9 

Change due to other factors — i. 2 

Public debt at close of year 289. 



1962 
estimate 
$289. 

+7.0 
-.6 



295.4 



1963 
estimate 
$295. 4 
—.5 



294.9 



billion temporary limit at times during the 
intervening months. 

Despite the expectation of budget balance 
for fiscal 1963 as a whole, with the debt 
expected to return to the $295 biUion level 
on June 30, 1963, seasonal requirements will 
temporarily raise the outstanding debt dur- 
ing the course of the year to nearly $305 
billion. To make the usual allowance for a 
margin of flexibility in fiscal 1963, and to 
restore immediately needed flexibility for 
operations over the remainder of fiscal 1962, 
I urge prompt enactment of a temporary in- 
crease of the debt limit to $308 billion, to be 
available for the remainder of this year and 
throughout fiscal 1963. 

BUDGET AND FISCAL POLICY 

Beyond the specific elements of budget 
expenditures and receipts, it is necessary to 
consider the relationship of the budget as 
a whole to the national economy. Three 
aspects of this relationship have been given 
particular attention in the preparation of this 
budget. 

THE BUDGET AND ECONOMIC GROWTH AND 

STABILITY. — Our national economic policy is 
to achieve rapid economic progress for the 
Nation, with the benefits widely distributed 
among all parts of the population, to achieve 
and maintain levels of employment and 
output commensurate with our growing la- 
bor force and productive capacity, and at 
the same time to maintain reasonable price 
stability. 

The Federal budget has a major role to 
play in achieving these objectives. Basic 
investments and services of large importance 
to the Nation are provided through the Gov- 



ernment. Striking evidence of this con- 
tribution is that the Federal budget today 
supports about two-thirds of all the scientific 
research and development going forward in 
the Nation. The budget also supports edu- 
cation, transportation, and other develop- 
mental activities contributing to national 
growth. 

Federal budget policy also has a major 
role to play in economic stabilization. This 
role was evident in fiscal years 1961 and 
1962, when deficits were incurred in turning 
the business cycle from recession to recovery, 
as had been true in 1958-59 and in earlier 
recessions. 

Wc do not expect another economic re- 
cession during the period covered by this 
budget. However, experience has taught us 
that periodic fluctuations in the economy 
cannot be completely avoided, and that Fed- 
eral fiscal policy should work flexibly and 
prompdy in such situations. For this, we 
need standby plans, the merits and mechan- 
ics of which have been explored ahead of 
time by the Congress and the administration. 

Three proposals particularly merit con- 
gressional consideration at this time: 

First, the President should be given stand- 
by discretionary authority, subject to con- 
gressional veto, to reduce personal income 
tax rates on clear evidence of economic need, 
for periods and by percentages set in the 
legislation. 

Second, he should have standby power to 
initiate, when unemployment rises sharply, 
a temporary expansion in Federal and fed- 
erally aided public works programs includ- 
ing authority for new Federal grants and 
loans for State and local capital improve- 
ments. The legislation providing for such 



35 



[13] Jan. i8 



Public Papers of the Presidents 



an anti-recession program should ensure that 
projects to be financed will meet high-prior- 
ity needs, will be started prompdy and com- 
pleted rapidly, and will result in a net addi- 
tion to Federal, State, or local expenditures. 
Third, legislation should be enacted to 
strengthen considerably the Federal-State 
unemployment insurance system, including 
a permanent system of extended unemploy- 
ment benefits for workers whose regular 
benefits expire — in good times or bad for 
workers with long work experience and in 
recession periods for all workers. These 
recommendations will be discussed in the 
Economic Report. 

THE BUDGET AND THE BALANCE OF PAY- 
MENTS. — In formulating this budget, careful 
consideration has been given to the impact 
on our international balance of payments of 
Federal expenditures abroad for defense, 
foreign assistance, and the conduct of foreign 
affairs. During the coming year, U.S. Gov- 
ernment expenditures abroad are estimated 
to be $4.4 billion, compared with $4.6 billion 
in the current year, mainly for construction 
and procurement of goods and services for 
U.S. military and civilian operations abroad; 
military and civilian salaries; and the frac- 
tion of foreign assistance which does not 
directly finance U.S. exports. The 1963 
estimate reflects many actions which have 
been taken to reduce the level of Govern- 
ment expenditures abroad. We are manag- 
ing to strengthen our military defenses over- 
seas without increasing our foreign exchange 
outlays, and with respect to economic aid we 
are stressing even further the procurement of 
American goods and services. 

This budget also reflects other measures 
we are taking to improve the balance of pay- 
ments, including tax measures to encourage 
the modernization of productive equipment 
and consequent increases in our competitive 
ability in world markets, stepped up export 
promotion activities, greater encouragement 
to foreign travel in the United States, and 
reduced tax inducements to invest in de- 



veloped areas abroad rather than at home. 
To improve further our balance of payments 
position, we are continuing negotiations 
with other industrialized countries with the 
objective of increasing their purchases of 
defense materiel in the United States and 
their contributions to the economic advance 
of the developing countries. 

Basic improvement in our balance of pay- 
ments will depend primarily upon our 
ability to continue a high degree of overall 
price stability and to improve the competi- 
tive position of U.S. goods in world markets. 
The dynamic development and prospective 
expansion of the European Economic Com- 
munity are resulting in fundamental changes 
in world commerce. This pattern of 
growth presents us with unparalleled ex- 
port opportunity as well as a continuing 
challenge. We must meet these changes 
boldly, confident in our continuing ability 
to compete on the world markets and to 
participate in the enormous benefits to all 
concerned which accrue from the worldwide 
division of labor and expansion of trade. 
These are the objectives of the legislative 
recommendations concerning trade expan- 
sion which I shall be sending to the Congress 
shortly in a special message. 

THE BUDGET AND FEDERAL CAPITAL OUT- 
LAYS. — In contrast with the practice of many 
businesses. State and local governments, and 
foreign governments, the budget of the U.S. 
Government lumps together expenditures 
for capital investment and for current opera- 
tions. Nevertheless it is clearly of impor- 
tance, in analyzing the significance of the 
Federal budget to the Nation, to recognize 
that the budget includes substantial expendi- 
tures for loans, public works, and other 
durable assets and capital items which will 
yield benefits in future years. 

Furthermore, increasing attention has 
been given in recent years to the significance 
of "developmental" expenditures — outlays 
for education and training, and for research, 
which have the effect of adding to the Na- 



36 



John F. Kennedy, 7962 



Jan. 18 [13] 



tion's level of knowledge and of skill, and 
thereby increase the capacity to produce a 
larger national output in future years. 

In the 1963 budget, expenditures for Fed- 
eral civil public w^orks are estimated to be 
$2.5 billion, and another $1.5 billion is esti- 
mated for additions to State, local, and pri- 
vate physical assets. About $7 billion of 
loan disbursements, to be repaid later, will 
be made in 1963 (including mortgage pur- 
chases); repayments in 1963 of loans pre- 
viously made are expected to total $5 billion, 
resulting in net budget expenditures of $2 
billion for civil loans. An estimated $4.8 
billion will be spent for civil developmental 
purposes such as education, training, health, 
and research and development. 

Certain trust fund transactions add to the 
Nation's assets, as well. For example, in 
1963, $3.2 billion will be spent for grants to 
States for highways through the highway 
trust fund. 



EFFICIENCY AND ECONOMY IN THE PUBLIC 
SERVICE 

The effort to increase the degree of effi- 
ciency with which the public business is 
conducted requires constant and unremitting 
effort on many fronts. This budget reflects 
continuing improvement in many agencies 
in productivity per employee, brought about 
through better training, better supervision, 
more effective organization, and more effi- 
cient equipment. 

The first requirement for efficiency and 
economy in Government is highly competent 
personnel. In this regard we face one very 
important problem on which I am placing 
a new recommendation before the Congress. 

This is the urgent need to achieve a reform 
of white-collar salary systems to enable the 
Government to obtain and keep the high 
quality personnel essential for its complex 
and varied programs. Such a reform should 
bring career employee salaries at all except 
the very top career levels into reasonable 



comparability with private enterprise sala- 
ries for the same level of work, and provide 
salary structures with pay distinctions more 
adequately reflecting differences in degree of 
responsibility. These two fundamental 
standards have been widely supported in the 
past as proper objectives in determining 
Government salary structures and I now urge 
that they be given practical effect. 

The legislation I am proposing provides 
for some adjustment in nearly all salary 
grades, but it is clear that the higher grades 
have fallen farthest below the level of reason- 
able comparability and must therefore be 
given the greatest percentage increases to 
make the Government competitive. 

There is also a need for more equitable 
recognition than is presently provided for 
postal employees, most of whom spend their 
entire careers in a single pay level. The 
proposed reform meets this need directly by 
increasing the number and size of in-grade 
steps and by replacing the present longevity 
increases with additional step increases. The 
proposal takes into account the career char- 
acter of the large postal carrier and clerk 
employee group, recruited at grade PFS-4, 
by linking their pay with employees paid 
under the Classification Act at GS-5. 

To ease the budget impact, and to provide 
ample time for the Congress to study the 
matter in the light of additional information 
which will become available annually, I am 
suggesting that the new pay scales take effect 
in three annual stages, beginning January i, 
1963. 

Important steps to improve the military 
pay structure, particularly for higher rank- 
ing officers, have been taken in recent years, 
first in 1955 and, more significandy, in 1958. 
However, the adjustments now being recom- 
mended in civilian compensation require 
study of the possible need for further 
changes in military compensation. Conse- 
quendy, I am directing that a thorough 
review be made which will permit an up-to- 
date appraisal of the many elements of mill- 



37 



[13] Jan. i8 



Public Papers of the Presidents 



tary compensation and their relationship to 
the new proposed levels of civilian com- 
pensation. There is one area, however, 
which has already been adequately reviewed. 
To reflect an acknowledged rise in housing 
costs, I am proposing legislation to provide 
selective increases in the basic allowance for 
quarters payable to military personnel. As 
in the case of the civilian pay adjustments, 
these increases should take effect January i, 
1963. 

Pay adjustments alone will not assure high 
standards of employee competence. There 
must be scrupulous fairness in recruiting 
and assigning personnel — and we have given 
renewed emphasis to equality of opportunity 
in the Federal service. There must be 
absolute integrity in all dealings with the 
public and with policy questions — and we 
have established clearer and stronger guides 
on ethical standards and recommended im- 
provement in the conflict of interest statutes. 
There must be careful attention to the views 
of employees and their organizations — and 
we are placing into effect the recommenda- 
tions of the task force on employee-manage- 
ment relations in the Federal service. 

Efficiency and economy require also steady 
improvement in the organization of the Ex- 
ecutive Branch. Notable advances were 
made this past year, with the cooperation of 
the Congress: new and stronger organiza- 
tions for foreign aid, for disarmament, for 
civil defense, and for maritime activities 
were established; a number of regulatory 
commissions were substantially strength- 
ened; and new centralized agencies were 
established in the Department of Defense 
for intelligence and for supply activities. A 
number of further recommendations are 
pending in the Congress, notably the pro- 
posal to establish a new Department of 
Urban Affairs and Housing, on which I 
urge early action. 

Finally, increased efficiency requires sys- 
tematic study of ways and means to accom- 
plish the public business more effectively and 
at less cost. This work goes forward con- 
tinually in all fields. I cite by way of 



illustration a few current examples: 

The study, now well along toward com- 
pletion, of the use of contracts with educa- 
tional institutions, nonprofit corporations, 
and private business concerns for the 
management of Government research and 
development activities. This study of "con- 
tracting-out" is being made by the Bureau 
of the Budget with the cooperation of the 
principal agencies concerned, and is expected 
to provide much more information on 
these matters than has been available here- 
tofore. 

Studies, recently completed or in progress, 
of the operations and management of the 
Export-Import Bank and the Federal Com- 
munications Commission. These studies are 
made by management consulting firms, and 
are similar to those completed in recent years 
for the Federal Trade Commission, the Civil 
Aeronautics Board, and the Interstate 
Commerce Commission, all of which pro- 
duced recommendations of considerable 
value. 

The study, organized at the request of the 
Department of State by the Carnegie En- 
dowment for International Peace, of person- 
nel requirements — and ways of meeting 
those requirements — ^for U.S. activities over- 
seas in the light of present-day conditions in 
the world. 

Studies of this kind normally do not pro- 
duce headlines, but they are typical of the 
effort continually underway to raise the 
efficiency and reduce the cost of conducting 
the public business. 



CONCLUSION 



This budget represents a blending of many 
considerations which affect our national 
welfare. Choices among the conflicting 
claims on our resources have necessarily been 
heavily influenced by. international develop- 
ments that continue to threaten world peace. 
At the same time, the budget supports those 
activities that have great significance to the 
Nation's social and economic growth — ^the 
mainsprings of our national strength and 



38 



John F. Kennedy, 1962 



Jan. 19 [14] 



leadership. In my judgment, this budget 
meets our national needs within a responsible 
fiscal framework — ^which is the test of the 
budget as an effective instrument of national 
policy. I recommend it to the Congress for 
action, in full confidence that it provides for 



the prudent use of our resources to serve the 
national interest. 

John F. Kennedy 

note: As printed above, illustrative diagrams and 
references to the budget document have been deleted. 



14 Remarks at the Conference Opening the 1962 Savings Bond 
Campaign. January 19, 1962 



Mr, Dillon, Mr, Fowler, Secretary, ladies and 
gentlemen: 

I came here this morning to express my 
thanks to all of you for coming to Washing- 
ton, for participating in these meetings, and 
also for the effort that you are making to 
advance the economic interests of the United 
States by the work you are doing in promot- 
ing our savings bond campaign. 

This is an effort that has been going on 
for a number of years, but I am sure you 
realize that it is our task to emphasize to the 
American people how important a contribu- 
tion they can make to their country and also 
to their own personal welfare. 

In order to make these bonds attractive, 
we must also make our contribution here in 
the National Government, in the financial 
and business community, in the labor com- 
munity, in the agricultural community, in 
maintaining the vitality and integrity of 
these bonds and therefore of the American 
economy. And it is my opinion that if we 
each meet our responsibilities in our respec- 
tive areas, that this can be done. 

As one of the contributions to maintaining 
the stability of the dollar and therefore the 
value of these bonds, we have presented, as 
you know, yesterday a budget which is in 
balance, which will help us maintain here 
in this country a balance between outflow 
and inflow. I am hopeful that this effort, 
which I feel can be reflected beneficially in 
our international balance of payments, will 
also be reflected in restraint by labor and 
management in the coming year. 

I said in my State of the Union Address 
that it was our hope that wage increases 



would be tied strongly to productivity in- 
creases and the stability of the price level. 
It is my hope that business profits will be 
substantial and that it will be possible for the 
business communities to maintain a price 
level consistent with our national needs. 

This is not merely an exhortation, it is a 
necessity for all of us. We face difficult 
problems and we carry heavy burdens. It 
is necessary for this country to be competi- 
tive. It is necessary for us to increase our 
exports overseas. If we can increase our 
exports overseas by 5 percent, it would mean 
a billion dollars in addition in our balance 
of payments problem, and could perhaps 
almost end it. A 10 percent increase in our 
exports, if our import level was maintained 
at its present level, could mean that our bal- 
ance of payments problem had been defeated. 
And I do not think this is beyond any of us. 
If we can maintain, as we have been able to 
maintain, really, for the last 3 years, a gen- 
eral stability in our price levels — in the last 
12 months, as you know, the wholesale 
price index dropped, consumer prices went 
up less than i percent — it is our belief that 
if management and labor attack their prob- 
lems from the public interest, and their own 
long-range interest, that it will be possible 
for us to maintain price stability for the com- 
ing year; and that if all those in the field of 
management and government can take every 
action that it is possible, to stimulate our 
exports, we can begin to get control of a 
serious problem that we face in the inter- 
national flow and ebb of payments. 

We spend a large sum of money, three 
billion dollars a year, in maintaining our 



39 



[i4] Jan. 19 



Public Papers of the Presidents 



defense forces abroad. We have to earn 
that money through a balance of trade in our 
favor, and therefore this goes to the heart 
of our survival. 

The British, v^ho have been affected, as 
you know, by a balance of payments prob- 
lem, have had to consider withdraw^ing their 
troops from vital areas in order to make ends 
meet. 

We do not wish to do that. We wish to 
maintain our commitments everywhere, so 
that the matter which we are now discussing, 
the stability of our price level, restraint by 
labor and management and the other ele- 
ments of our community — prudent judg- 
ment by our National Government — a 
vigorous drive in the field of exports — a 
determination to make ourselves more than 
competitive — to increase our balance of pay- 
ments, all represent a contribution which the 
citizen of this country who is active in these 
fields can make to the maintenance of free- 
dom around the world. 

So this is all related to the work that you 
are now doing. The savings bonds which 
you sell help make the very complicated task 
of the Secretary of the Treasury easier. It 
provides a method of steering savings by our 



fellow citizens into these bonds; it eases some 
of the pressures on the inflationary scale; it 
represents an investment in the United 
States — and if we meet our responsibilities in 
the areas I have described, it will make our 
investments have increasing value in the 
years to come. 

I want to express my thanks to all of you 
for the effort that you have made in this 
regard. A year ago, in taking over the re- 
sponsibilities of this Office, I emphasized 
the desirability of contributions which all of 
us could make to our country. The task of 
savings bonds has lost the newness of nov- 
elty, but nevertheless it is more important, 
perhaps, than it ever was. And therefore, 
though it may not be spectacular, it repre- 
sents the kind of day-to-day work and con- 
tribution by you which I think makes a 
measurable difference to our country. 

So on behalf of all of our citizens, I 
express my thanks to you. 

note: The President spoke at the Sheraton Park 
Hotel in Washington at 10:15 a.m. In his opening 
remarks he referred to Douglas Dillon, Secretary 
of the Treasury, Henry H. Fowler, Under Secretary 
of the Treasury, and Dean Rusk, Secretary of State. 



15 Address at the Inaugural Anniversary Dinner. 
]anuary 20, 1962 



Mr, Rosenbloom and Mrs, Freeman, Mr, 
Bailey and Mr. McClos\ey, Mr, Speaker: 

I first of all want to express, I know, on 
behalf of all of us, our great appreciation to 
Miss Clooney, Miss Remick and Danny 
Thomas for coming from a far distance to 
help us tonight. I wish we could all just 
applaud them. 

I want to also express my appreciation to 
President Truman. I must say it is nice to 
have a former President who speaks well of 
you, and we are glad to have him here to- 
night. His only request has been, since I 
have been President, to get his piano up from 
the cellar, and we have done that — and we 
are going to run on it. 



And I also want to express my apprecia- 
tion, and the appreciation of us all, to the 
Vice President for his tribute to Speaker Ray- 
burn. I must say that the merger of Boston 
and Austin, as he said today, was really the 
last merger that the Attorney General has 
allowed, but it has been one of the most 
successful. And as a loyal and faithful 
friend, I think we have worked together 
better than any President and Vice Presi- 
dential team in history, at least since Roose- 
velt and Truman. 

I spoke a year ago today, to take the In- 
augural, and I would like to paraphrase a 
couple of statements I made that day by 
saying that we observe tonight not a celebra- 



40 



]ohn F. Kennedy, 7962 



Jan. 20 [15] 



tion of freedom but a victory of party, for 
we have sworn to pay off the same party debt 
cur forebears ran up nearly a year and three 
months ago. 

Our deficit will not be paid off in the next 
hundred days, nor will it be paid off in the 
first one thousand days, nor in the life of this 
administration. Nor, perhaps even in our 
lifetime on this planet, but let us begin — 
remembering that generosity is not a sign 
of weakness and that Ambassadors are al- 
ways subject to Senate confirmation, for if 
the Democratic Party cannot be helped by 
the many who are poor, it cannot be saved 
by the few who are rich. So let us begin. 

I want to express our thanks to all of you 
for helping. What we are attempting to 
do tonight is to lay the groundwork for the 
Congressional campaigns of 1962, and we 
realize, I think, all the Members of the 
House and Senate, that history is not with 
us, that in this century only in 1934, during 
the periods of the great pre-eminence of the 
Democratic Party did the party in power 
ever win seats, let alone hold its own. But 
we believe in 1962 that the Democratic 
Party, both at home and abroad, is best fitted 
to lead this country — and therefore we start 
tonight on the campaigns of 1962. 

This is — though we like to think of our- 
selves as a young country — this is the oldest 
republic in the world. When the United 
States was founded there was a King in 
France, and a Czar in Russia, and an Em- 
peror in Peking. They have all been wiped 
away, but the United States has still survived. 
We are also members of the oldest political 
party on earth, and it is a source of satisfac- 
tion to me that when we attempt, in this 
administration, to rebuild our ties with Latin 
America, to strengthen our Alliance for 
Progress, we trod in the same steps that 
Franklin Roosevelt trod in, nearly 25 or 30 
years ago. 

And when we attempt this year to build 
more closely the Atlantic Community, we 
trod in the same steps that President Truman 
trod in, nearly 14 years ago, when he de- 
veloped the Marshall plan and NATO. 



And when we stand with the United 
Nations against the desires of those who 
make themselves our adversaries, and even 
our friends, we stand where Woodrow 
Wilson stood nearly 50 years ago. 

And when we make a great national effort, 
to make sure that free men are not second 
in space, we move in the same direction that 
Thomas Jefferson moved in when he sent 
Lewis and Clark to the far reaches of this 
country during his term of office. 

I am proud to be a Democrat, and in my 
opinion, in November of 1962, any Member 
of the House, the Senate, the State legislature 
and the Governor can stand with pride on 
the record of the Democratic Party. 

To govern is to choose, and the people of 
the United States, I believe in this vital year, 
when we are faced with the greatest hazards 
that we have faced in our long history, 
should be faced with a choice. I do not 
believe there is room in the United States for 
two parties who believe in lying at anchor. 

The role of the Democratic Party, the rea- 
son it has outlived the Federal Party, the 
Whig Party, and now holds responsibility in 
the executive branch and the House and the 
Senate, after this long history, has been be- 
cause it has believed in moving out, in mov- 
ing ahead, in starting on new areas, and 
bringing new programs here and abroad. 

That is the function of our party. We 
have no other function. And I believe in 
1962 the Democratic Party should run as it 
has run in the past, as a progressive party, 
ready to defend its record, ready to recognize 
in a changing and vital world that our party 
must move with it. 

So we come tonight in the beginning of 
a long campaign, and we ask your help, 
because what we start tonight, we believe can 
be finished in November, and I believe that 
the interests of this country will be served by 
our party as it has on so many vital occasions 
in the past — and the fire from our effort can 
light the world. 

Thank you. 

note: The President spoke at the National Guard 
Armory in Washington. In his opening remarks he 



715-405 0—64- 



41 



[15] Jan. 20 



Public Papers of the Presidents 



referred to Carroll Rosenbloom of Baltimore, Md., 
who acted as chairman of the dinner; Mrs. Orville 
L. Freeman, wife of the Secretary of Agriculture; 
John M. Bailey, chairman of the Democratic National 
Committee; Matthew H. McCloskey, former treasurer 



of the Democratic National Committee; and John 
W, McCormack, Speaker of the House of Repre- 
sentatives. He also referred to Miss Rosemary 
Clooney, Miss Lee Remick, and Mr. Danny Thomas 
who entertained at the dinner. 



16 Message to the Congress Presenting the President's First 
Economic Report. January 22, 1962 

[ Released January 22, 1962. Dated January 20, 1962 ] 



To the Congress of the United States: 

I report to you under the provisions of the 
Employment Act of 1946 at a time when 

— the economy has regained its mo- 
mentum; 

' — the economy is responding to the Fed- 
eral Government's efforts, under the Act, 
"to promote maximum employment, pro- 
duction, and purchasing pov^er;" 

— ^the economy is again moving toward 
the central objective of the Act — ^to afford 
"useful employment opportunities, includ- 
ing self-employment, for those able, willing, 
and seeking to work." 

My first Economic Report is an appropri- 
ate occasion to re-emphasize my dedication 
to the principles of the Employment Act. 
As a declaration of national purpose and as 
a recognition of Federal responsibility, the 
Act has few parallels in the Nation's history. 
In passing the Act by heavy bipartisan ma- 
jorities, the Congress registered the consen- 
sus of the American people that this Nation 
will not countenance the suffering, frustra- 
tion, and injustice of unemployment, or let 
the vast potential of the world's leading 
economy run to waste in idle manpower, 
silent machinery, and empty plants. 

The f ramers of the Employment Act were 
wise to choose the promotion of "maximum 
employment, production, and purchasing 
power" as the keystone of national economic 
policy. They were confident that these ob- 
jectives can be effectively promoted "in a 
manner calculated to foster and promote 
free competitive enterprise and the general 
welfare." They knew that our pursuit of 
maximum employment and production 
would be tempered with compassion, with 



justice, and with a concern for the future. 
But they knew also that the other standards 
we set for our economy are easier to meet 
when it is operating at capacity. A full 
employment economy provides opportunities 
for useful and satisfying work. It rewards 
enterprise with profit. It generates saving 
for the future and transforms it into produc- 
tive investment. It opens doors for the un- 
skilled and underprivileged and closes them 
against want and frustration. The con- 
quest of unemployment is not the sole end 
of economic policy, but it is surely an 
indispensable beginning. 

The record of the economy since 1946 is a 
vast improvement over the prolonged mass 
unemployment of the 1930's. The Employ- 
ment Act itself deserves no small part of the 
credit. Under the mandate and procedures 
of the Act, both Congress and the Executive 
have kept the health of the national economy 
and the economic policies of the Govern- 
ment under constant review. And the na- 
tional commitment to high employment has 
enabled business firms and consumers to act 
and to plan without fear of another great 
depression. 

Though the postwar record is free of 
major depression, it is marred by four re- 
cessions. In the past fifteen years, the 
economy has spent a total of seven years 
regaining previous peaks of industrial pro- 
duction. In two months out of three, 4 
percent or more of those able, willing, and 
seeking to work have been unable to find 
jobs. We must do better in the 1960's. 

To combat future recessions — to keep 
them short and shallow if they occur — I 
urge adoption of a three-part program for 



42 



John F. Kennedy, 7962 



Jan. 22 [16] 



sustained prosperity, which will (i) provide 
stand-by power, subject to congressional 
veto, for temporary income tax reductions, 
(2) set up a stand-by program of public 
capital improvements, and (3) strengthen 
the unemployment insurance system. 

These three measures will enable the Gov- 
ernment to counter swings in business 
activity more promptly and more powerfully 
than ever before. They will give new and 
concrete meaning to the declaration of 
policy made in the Employment Act. They 
will constitute the greatest step forward in 
public policy for economic stability since the 
Act itself. 

As the Employment Act prescribes, I shall 
in this Report review "economic conditions" 
in the United States in 1961 and "current 
and foreseeable economic trends in the levels 
of employment, production, and purchasing 
power;" set forth "the levels of employment, 
production, and purchasing power obtaining 
in the United States and such levels needed 
to carry out the policy" of the Act; and pre- 
sent my economic program and legislative 
recommendations for 1962. 

PROGRESS IN 1 96 1 

Last January the economy was in the grip 
of recession. Nearly 7 percent of the labor 
force was unemployed. Almost one-fifth 
of manufacturing capacity lay idle. Actual 
output was running $50 billion (annual 
rate) short of the economy's great potential. 
These figures reflected not only the setback 
of 1960-61 but the incomplete recovery 
from the recession of 1957-58. The task 
before us was to recover not from one but 
from two recessions. 

At the same time, gold was leaving the 
country at a rate of more than $300 million a 
month. In the three previous years, the 
Nation had run a total deficit of $10 billion 
in its basic international accounts. These 
large and persistent deficits had weakened 
confidence in the dollar. 

In my message to the Congress on Feb- 
ruary 2, I stated that this Administration's 



"realistic aims for 1961 are to reverse the 
downtrend in our economy, to narrow the 
gap of unused potential, to abate the waste 
and misery of unemployment, and at the 
same time to maintain reasonable stability 
of the price level." In a message on the 
balance of payments on February 6, I added 
a fifth aim, to restore confidence in the dollar 
and to reduce the deficit in international 
payments. 

These five aims for 1961 have been 
achieved: 

(i) The downtrend was reversed. Gross 
national product (GNP) grew from $501 
billion (annual rate) in the first quarter to 
a record rate of $542 billion in the last quar- 
ter. In July, industrial production regained 
its previous peak, and by the end of the year 
it showed a total rise of 13 percent. 

(2) These gains brought into productive 
use nearly half the plant capacity which was 
idle at the beginning of the year. The 
growth of GNP narrowed the over-all gap of 
unused potential from an estimated 10 per- 
cent to 5 percent. 

(3) Unemployment dropped from 6.8 to 
6.1 percent of the labor force. The number 
of areas of substantial labor surplus declined 
from 10 1 in March to 60 in December. 

(4) Price stability has been maintained 
during the recovery. Since February, 
wholesale prices have fallen slighdy, and 
consumer prices have risen only one-half of 
I percent. 

(5) Confidence in the dollar has been 
restored. Our gold losses were cut from 
$1.7 billion in i960 to less than $0.9 billion 
in 1961. The deficit in 1961 in our basic 
international transactions was about one- 
third as large as in i960. 

The "Program To Restore Momentum to 
the American Economy" which I proposed 
to the Congress on February 2 resulted in 
prompt legislation to 

— extend unemployment insurance bene- 
fits on a temporary basis; 

— make Federal aid available, through the 
States, to dependent children of the 
unemployed; 



43 



[i6] Jan. 22 



Public Papers of the Presidents 



— liberalize social security benefits; 

— promote Homebuilding under the 
Housing Act of 1961; 

— ^raise the minimum wage and extend 
it to more workers; 

— provide Federal aid under the Area 
Redevelopment Act, to revitalize the econ- 
omies of areas v^ith large and persistent 
unemployment. 

Prompt executive action v^as taken t6 ac- 
celerate Federal purchases and procurement, 
highvv^ay fund distributions, tax refunds, 
and veterans' life insurance dividends. The 
Administration raised farm price supports, 
expanded the food distribution program, 
and established eight pilot food stamp 
programs. 

Monetary and credit policies responded 
to the dual demands of economic recovery 
and the balance of payments. On the one 
hand, the Federal Reserve System main- 
tained general monetary ease; Federal Re- 
serve open market operations, complemented 
by Treasury management of the public debt 
and of government investment accounts, as- 
sured an ample supply of credit which served 
to counter upward pressures on long-term 
interest rates; reduction of FHA ceiling 
rates, supported by FNMA mortgage pur- 
chases, eased mortgage credit and stimulated 
"homebuilding; and the Small Business Ad- 
ministration made its credit more widely 
available at lower cost. On the other hand, 
both monetary and debt management poli- 
cies countered downward pressures on short- 
term rates, with a view to checking the 
outflow of funds to money markets abroad. 

The Federal Budget played its proper role 
as a powerful instrument for promoting eco- 
nomic recovery. The measures to relieve 
distress and restore economic momentum 
expanded purchasing power early in the 
year. Subsequently, major increases in ex- 
penditure for national security and space 
programs became necessary. In a fully em- 
ployed economy, these increases would have 
required new tax revenues to match. But 
I did not recommend tax increases at this 
point because they would have cut into 



private purchasing power and retarded 
recovery. 

The increase of GNP — $41 billion (an- 
nual rate) from the first to the fourth quar- 
ter — reflected increased purchases of goods 
and services by consumers, business, and 
governments: 

— Consumers accounted for nearly half. 
As household incomes ro?e, consumer ex- 
penditure expanded by $18 billion. 

— Residential construction and business 
expenditures for fixed investment responded 
prompdy to the recovery and to favorable 
credit conditions. By the end of the year, 
they had risen by $8 billion. 

— Business stopped liquidating inven- 
tories and started rebuilding them. This 
shift, which occurred early in the year and 
helped get recovery off to a flying start, 
added $8 billion to the demand for goods 
and services by the fourth quarter. 

— ^Federal, State, and local government 
purchases rose by $8 billion. 

— Although exports were somewhat high- 
er in the fourth quarter than in the first, 
the rise in imports in response to recovery 
lowered net exports by $1 billion. 

Labor, business, and farm incomes rose as 
the economy recovered. Wages and salaries 
increased by $19 billion (annual rate) from 
the first quarter to the fourth. Corporate 
profits after taxes recovered sharply, receiv- 
ing about 15 percent of the gains in GNP. 
With the help of new programs, farm oper- 
ators' net income from farming increased 
from $12 billion in i960 to I13 billion in 
1961, and net income per farm rose by $350. 
The after-tax incomes of American con- 
sumers increased by $21 billion, or $92 per 
capita, during the year. Since consumer 
prices rose by only one-half of i percent, 
these gains in income were almost entirely 
gains in real purchasing power. 

One million jobs were added by nonagri- 
cultural establishments during the expan- 
sion. But employment did not keep pace 
with production and income. Productivity 
rose rapidly as capacity was more fully 
and efficiently utilized. And more work- 



44 



]ohn F. Kennedy, 7962 



Jan. 22 [16] 



ers on part-time jobs were able to work full 
time. 

The record of 1961 demonstrated again 
the resiliency of the U.S. economy with well- 
timed support from government policy. 
Business responded to the expansion of pur- 
chasing power by producing more goods 
and services, not by raising prices. Indeed, 
the record of price stability in three quarters 
of expansion was better than in the three 
preceding quarters of recession. The rates 
of advance of production and income com- 
pared favorably with the two preceding 
periods of expansion. Production grew 
rapidly without straining capacity or 
encountering bottlenecks. 

As 1 96 1 ended, actual output was still $25 
to $30 billion short of potential, and unem- 
ployment was far too high. But much of 
the industrial manpower, machinery, and 
plant that lay idle a year ago had been drawn 
back into productive use. And the momen- 
tum of the 1 96 1 recovery should carry the 
economy further toward full employment 
and full production in 1962. 

GOALS OF ECONOMIC POLICY 

Though we may take satisfaction with 
our progress to date, we dare not rest 
content. The unfinished business of eco- 
nomic policy includes (i) the achievement 
of full employment and sustained prosperity 
without inflation, (2) the acceleration of 
economic growth, (3) the extension of equal- 
ity of opportunity, and (4) the restoration 
of balance of payments equilibrium. Eco- 
nomic policy thus confronts a demanding 
assignment, but one which can and will be 
met within the framework of a free 
economy. 

Our Goal of Full and Sustained Prosperity 
Without Inflation 

Recovery has carried the economy only 
part of the way to the goal of "maximum 
production, employment, and purchasing 
power." The standing challenge of the Em- 
ployment Act is not merely to do better, but 



to do our best — the "maximum." Attain- 
ment of that maximum in 1963 would mean 
a GNP of approximately $600 billion, wages 
and salaries of over $320 billion, and cor- 
porate profits of as much as $60 billion, all 
in 1 96 1 prices. The material gains are them- 
selves staggering, but they are less impor- 
tant than the new sense of purpose and the 
new opportunities for improvement of 
American life that could be realized by 
"maximum" use of the productive capacity 
now lying idle and the capacity yet to be 
created. 

Involuntary unemployment is the most 
dramatic sign and disheartening consequence 
of underutilization of productive capacity. 
It translates into human terms what may 
otherwise seem merely an abstract statistic. 
We cannot afford to settle for any prescribed 
level of unemployment. But for working 
purposes we view a 4 percent unemployment 
rate as a temporary target. It can be achieved 
in 1963, if appropriate fiscal, monetary, and 
other policies are used. The achievable rate 
can be lowered still further by effective poli- 
cies to help the labor force acquire the skills 
and mobility appropriate to a changing econ- 
omy. We must also continue the cooperative 
effort, begun with the Area Redevelopment 
Act of 1961, to bring industry to depressed 
areas and jobs to displaced workers. Ulti- 
mately, we must reduce unemployment to 
the minimum compatible with the function- 
ing of a free economy. 

We must seek full recovery without en- 
dangering the price stability of the last 4 
years. The experience of the past year has 
shown that expansion without inflation is 
possible. With cooperation from labor and 
management, I am confident that we can 
go on to write a record of full employment 
without inflation. 

The task of economic stabilization does 
not end with the achievement of full re- 
covery. There remains the problem of keep- 
ing the economy from straying too far above 
or below the path of steady high employ- 
ment. One way lies inflation, and the other 
way lies recession. Flexible and vigilant 



45 



Cewlsto.! PubHj Library 
Lew;stO]i|, Maine 



[i6] Jan. 22 



Public Papers of the Presidents 



fiscal and monetary policies will allow us to 
hold the narrow middle course. 

Our Goal of Economic Growth 

While we move toward full and sustained 
use of today's productive capacity, we must 
expand our potential for tomorrow. Our 
postwar economic growth — though a step 
ahead of our record for the last half- 
century — ^has been slowing down. We have 
not in recent years maintained the 4 to 4!/! 
percent growth rate which characterized the 
early postwar period. We should not settle 
for less than the achievement of a long-term 
growth rate matching the early postwar rec- 
ord. Increasing our growth rate to 4V2 per- 
cent a year lies within the range of our 
capabilities during the 1960's. It will lay 
the groundwork for meeting both our do- 
mestic needs and our world responsibilities. 

In November of last year we joined with 
our 19 fellow members of the Organization 
for Economic Cooperation and Develop- 
ment in setting a common target for eco- 
nomic growth. Together we pledged 
ourselves to adopt national and international 
policies aimed at increasing the combined 
output of the Atlantic Community by 50 
percent between i960 and 1970. The na- 
tions of the West are encouraged and en- 
livened by America's determination to make 
its full contribution to this joint effort. 

We can do our share. In the mid-1960's, 
the children born in 1943 and after will be 
arriving at working age. The resulting 
rapid growth in our labor force offers us an 
opportunity, not a burden — ^provided that 
we deliver not only the jobs but also the 
research, the training, and the capital invest- 
ment to endow our new workers with high 
and rising productivity as they enter eco- 
nomic life. 

Our Goal of Equal Opportunity 

Increasingly in our lifetime, American 
prosperity has been widely shared and it 
must continue so. The spread of primary, 
secondary, and higher education, the wider 
availability of medical services, and the im- 

46 



proved postwar performance of our economy 
have bettered the economic status of the 
poorest families and individuals. 

But prosperity has not wiped out poverty. 
In i960, 7 million families and individuals 
had personal incomes lower than $2,000. 
In part, our failure to overcome poverty is 
a consequence of our failure to operate the 
economy at potential. The incidence of un- 
employment is always uneven, and increases 
in unemployment tend to inflict the greatest 
income loss on those least able to afford it. 
But there is a claim on our conscience from 
others, whose poverty is barely touched by 
cyclical improvements in general economic 
activity. To an increasing extent, the poorest 
families in America are those headed by 
women, the elderly, nonwhites, migratory 
workers, and the physically or mentally 
handicapped — people who arc shortchanged 
even in time of prosperity. 

Last year's increase in the minimum wage 
is evidence of our concern for the welfare of 
our low-income fellow citizens. Other leg- 
islative proposals now pending will be par- 
ticularly effective in improving the lot of 
the least fortunate. These include (i) 
health insurance for the aged, financed 
through the social security system, (2) Fed- 
eral aid for training and retraining our un- 
employed and underemployed workers, (3) 
the permanent strengthening of our unem- 
ployment compensation system, and (4) 
substantial revision in our public welfare 
and assistance program, stressing rehabilita- 
tion services which help to restore families 
to independence. 

Public education has been the great bul- 
wark of equality of opportunity in our 
democracy for more than a century. Our 
schools have been a major means of pre- 
venting early handicaps from hardening 
into permanent ignorance and poverty. 
There can be no better investment in equity 
and democracy — and no better instrument 
for economic growth. For this reason, I 
urge action by the Congress to provide Fed- 
eral aid for more adequate public school 
facilities, higher teachers' salaries, and bet- 



]ohn F. Kennedy, 7962 



Jan. 22 [16] 



tcr quality in education, I urge early com- 
pletion of congressional action on the bill to 
authorize loans for construction of college 
academic facilities and to provide scholar- 
ships for able students who need help. The 
talent of our youth is a resource which must 
not be wasted. 

Finally, I shall soon propose to the Con- 
gress an intensive program to reduce adult 
illiteracy, a handicap which too many of our 
fellow citizens suffer because of inadequate 
educational opportunities in the past. 

Our God of Basic Balance in International 
Payments 

Persistent international payments deficits 
and gold outflows have made the balance of 
payments a critical problem of economic 
policy. We must attain a balance in our 
international transactions which permits us 
to meet heavy obligations abroad for the 
security and development of the free world, 
without continued depletion of our gold 
reserves or excessive accumulation of short- 
term dollar liabilities to foreigners. Simul- 
taneously, we must continue to reduce 
barriers to international trade and to increase 
the flow of resources from developed to de- 
veloping countries. To increase our exports 
is a task of highest priority, and one which 
gives heightened significance to the mainte- 
nance of price stability and the rapid increase 
of productivity at home. 

POLICIES FOR 1962 

Prospects for 1^62 

The Nation will make further economic 
progress in 1962. Broad advances are in 
prospect for the private economy. The gains 
already achieved have set the stage for fur- 
ther new records in output, employment, per- 
sonal income, and profits. Rising household 
incomes brighten the outlook for further 
increases in consumer buying, particularly 
of durable goods. Business firms will need 
larger inventories to support higher sales, 
and improved profits and expanded markets 
will lead to rising capital outlays. The out- 



lays of Federal, State, and local governments 
will continue to increase as we work for 
peace and progress. 

In the first half of 1962, we may therefore 
expect vigorous expansion in production and 
incomes, with GNP increasing to a range 
of $565-570 billion in the second quarter, 
employment continuing to rise, and the un- 
employment rate falling further. 

In the second half of 1962, business invest- 
ment in plant and equipment should pick 
up speed and help maintain the momentum 
of progress toward full employment — and 
toward future economic growth. Rising 
output should push factory operating rates 
closer to capacity and raise profits still 
further above previous records. To these 
incentives for capital expenditures will be 
added Treasury liberalization of deprecia- 
tion guidelines and, if the Congress acts 
favorably, the 8 percent tax credit for 
machinery and equipment outlays. 

For 1962 as a whole, GNP is expected to 
rise approximately $50 billion above the 
$521 billion level of 1961. This would be 
another giant stride toward a fully employed 
economy. The record of past recoveries and 
of the U.S. economy's enormous and grow- 
ing potential indicates that this is a gain we 
can achieve. In the perspective of our com- 
mitments both to our own expanding popu- 
lation and to the world, it is a gain we need 
to achieve. 

Budgetary Policy 

Prosperity shrinks budgetary deficits, as 
recessions create them. Budget revenues are 
expected to rise 13 percent between the fiscal 
years 1962 and 1963; revenues rose i^Yz 
percent between 1959 and i960 in the pre- 
vious upswing. Such sensitivity of budget 
revenues to business activity is desirable be- 
cause it moderates swings in private pur- 
chasing power. 

I have submitted to the Congress a Budget 
which will balance in fiscal 1963 as prosperity 
generates sharply rising tax revenues. The 
Budget is appropriately paced to the ex- 
pected rate of economic expansion. It will 



47 



[i6] Jan. 22 



Public Papers of the Presidents 



give less stimulus to business activity as pri- 
vate demand for goods and services grows 
stronger and shoulders more of the respon- 
sibility for continued gains. But the shift 
v^ill be moderate and gradual. We have 
learned from the disappointing 1959-60 ex- 
perience that an abrupt and excessively large 
sv^ing in the Budget can drain the vigor 
from the private economy and halt its prog- 
ress, especially if a restrictive monetary policy 
is followed simultaneously. This will not 
be repeated. Budget outlays will rise by 
$3!^ billion from fiscal 1962 to fiscal 1963, 
whereas they fell by more than that amount 
from fiscal 1959 to fiscal i960. The 1963 
Budget starts from a much smaller deficit 
and will move to a moderate surplus as the 
recovery strengthens. 

With support from increased government 
expenditures and other government policies, 
the momentum of the recovery is expected 
to raise GNP to $570 billion for 1962 as a 
whole. Prompt enactment of the proposed 
tax credit for investment would give the 
economy further strength. Economic ex- 
pansion at the expected pace will yield $93.0 
billion in Budget revenues in fiscal 1963 to 
cover $92.5 billion in Budget expenditures. 
If private demands for goods and services 
should prove to be weaker in 1962 than now 
anticipated, less private purchasing power 
will flow into taxes, and Budget revenues 
will fall short of the $93.0 billion figure. If 
private demands are stronger, tax receipts 
will rise further and Budget revenues will 
exceed expectations. 

A surplus of $4.4 billion in fiscal 1963 is 
expected in the national income accounts 
budget — a budget constructed to measure 
the direct impact of Federal expenditures 
and receipts on the flow of total spending. 
The surplus would be several billion dollars 
higher if the economy were operating stead- 
ily at a level high enough to hold unemploy- 
ment to 4 percent. 

Either surplus — prospective or potential — 
is both a challenge and an opportunity. A 
government surplus is a form of saving — an 



excess of income over expenditure. Like any 
other form of saving, it releases labor and 
other productive resources which can be used 
to create new investment goods — plant, 
equipment, or houses. If investment de- 
mand is not strong enough to use the 
resources and labor, they will be wasted in 
unemployment and idle capacity, and the 
surplus itself will not be realized. But if the 
necessary investment demand is present, the 
surplus will make possible the acceleration 
of economic growth by enlarging the future 
productive power of the economy. The 
Government is seeking to help American 
industry to meet this challenge and seize this 
opportunity, through such measures as the 
8 percent investment tax credit and revisions 
of depreciation guidelines. 

We face 1962 with optimism but not com- 
placency. If private demand shows unex- 
pected strength, public policy must and will 
act to avert the dangers of rising prices. If 
demand falls short of current expectations, 
more expansionary policies will be pursued. 
In 1962, vigilance and flexibility must be 
the guardians of economic optimism. 

Monetary and Credit Policies 

Monetary, credit, and debt management 
policies can also help to assure that produc- 
tive oudets exist for the funds that the 
American people save from prosperity in- 
comes. The balance foreseen in the Budget 
for fiscal year 1963, and the surplus which 
would arise at full employment, both indi- 
cate that fiscal policy is assuming a large 
share of the burden of forestalling inflation- 
ary excesses of demand. With monetary 
and related policies relieved of a substantial 
part of this burden, they can more effectively 
be used to assure a flow of investment funds 
which will transform the economy's present 
capacity to save into future capacity to 
produce. 

At the same time, monetary and debt 
management policies must continue to pro- 
tect the balance of international payments 
against outflows of short-term capital. As 



48 



John F. Kennedy, 7962 



Jan. 22 [16] 



in 1961, domestic expansion and the balance 
of payments confront these policies with a 
dual task, requiring continued ingenuity in 
technique and flexibility in emphasis. 

Balance of Payments 

The program launched last year to reduce 
our payments deficit and maintain confi- 
dence in the dollar will, I am sure, show 
further results in 1962. I am hopeful that 
the target of reasonable equilibrium in our 
international payments can be achieved 
within the next two years; but this will re- 
quire a determined effort on the part of all 
of us — government, business and labor. 
This effort must proceed on a number of 
fronts. 

Export expansion. An increase in the 
U.S. trade surplus is of the first importance. 
If we are to meet our international respon- 
sibilities, we must increase exports more 
rapidly than the increase in imports which 
accompanies our economic growth. 

Our efforts to raise exports urgendy re- 
quire that we negotiate a reduction in the 
tariff of the European Common Market. I 
shall shordy transmit to the Congress a spe- 
cial message elaborating the details of the 
proposed Trade Expansion Act of 1962 and 
explaining why I believe that a new trade 
policy initiative is imperative this year. 

To encourage American businessmen to 
become more export-minded, we have in- 
augurated a new export insurance program 
under the leadership of the Export-Import 
Bank, and we have stepped up our export 
promotion drive by improving the commer- 
cial services abroad of the U.S. Govern- 
ment, establishing trade centers abroad, 
planning trade fairs, improving the trade 
mission program, and working with business 
firms on export opportunities through field 
offices of the Department of Commerce and 
the Small Business Administration. Foreign 
travel to the United States, which returns 
dollars to our shores, is now being pro- 
moted through the first Federal agency ever 
created for this purpose. 



Prices and productivity. Our export 
drive will founder if we cannot keep our 
prices competitive in world markets. 
Though our recent price performance has 
been excellent, the improving economic 
climate of 1962 will test anew the states- 
manship of our business and labor leaders. 
I believe that they will pass the test; our 
Nation today possesses a new understanding 
of the vital link between our level of prices 
and our balance of payments. 

In the long run, the competitive position 
of U.S. industry depends on a sustained and 
rapid advance in productivity. In this, the 
interests of economic recovery, long-run 
growth, and the strength of the dollar 
coincide. Modernization and expansion of 
our industrial plant will accelerate the ad- 
vance of productivity. 

Foreign investment. To place controls 
over the flow of private American capital 
abroad would be contrary to our traditions 
and our economic interests. But neither is 
there justification for special tax incentives 
which stimulate the flow of U.S. investment 
to countries now strong and economically 
developed, and I again urge the elimination 
of these special incentives. 

The new foreign trade program which I 
am proposing to the Congress will help to 
reduce another artificial incentive to U.S. 
firms to invest abroad. The European Com- 
mon Market has attracted American capital, 
pardy because American businessmen fear 
that they will be unable to compete in the 
growing European market unless they build 
plants behind the common tariff wall. We 
must negotiate down the barriers to trade 
between the two great continental markets, 
so that the exports of our industry and agri- 
culture can have full opportunity to compete 
in Europe. 

Governmental expenditures abroad. Mil- 
itary expenditures form by far the greater 
part of our governmental oudays abroad. 
We are discussing with certain of our Euro- 
pean allies the extent to which they can in- 
crease their own military procurement from 



49 



[i6] Jan. 22 



Public Papers of the Presidents 



the United States to offset our dollar ex- 
penditures there. As a result, the net cost 
to our balance of payments is expected to be 
reduced during the coming year, in spite of 
increased deployment of forces abroad be- 
cause of the Berlin situation. 

To curtail our foreign aid programs in 
order to strengthen our balance of payments 
would be to sacrifice more than we gain. 
But we can cut back on the foreign cur- 
rency costs of our aid programs, and thus 
reduce the burden on our balance of pay- 
ments. A large percentage of our foreign 
aid is already spent for procurement in the 
United States; this proportion will rise as 
our tightened procurement procedures be- 
come increasingly effective. 

We have sought to induce other advanced 
countries to undertake a larger share of the 
foreign aid effort. We will continue our 
efforts through the Development Assistance 
Committee of the Organization for Eco- 
nomic Cooperation and Development to 
obtain a higher level of economic assistance 
by other industrial nations to the less de- 
veloped countries. 

Short-term capital movements. Outflows 
of volatile short-term funds added to the 
pressures on the dollar in i960. Our policies 
in 1 96 1 have diminished the dangers of dis- 
ruptive movements of short-term capital. 
For the first time in a generation, the Treas- 
ury is helping to stabilize the dollar by op- 
erations in the international exchange 
markets. The Federal Reserve and the 
Treasury, in administering their monetary 
policy and debt management responsibilities, 
have sought to meet the needs of domestic 
recovery in ways which would not lead to 
outflows of short-term capital. 

During the past year, we have consulted 
periodically with our principal financial 
partners, both bilaterally and within the 
framework of the OECD. These consulta- 
tions have led to close cooperation among 
fiscal and monetary authorities in a com- 
mon effort to prevent disruptive currency 
movements. 



Strengthening the international monetary 
system. The International Monetary Fund 
is playing an increasingly important role in 
preserving international monetary stability. 
The reserve strength behind the dollar in- 
cludes our drawing rights on the Fund, of 
which $1.7 billion is automatically available 
under current practices of the Fund. An 
additional $4.1 billion could become avail- 
able under Fund policies, insofar as the 
Fund has available resources in gold and 
usable foreign currencies. Recently, the 
Fund has diversified its use of currencies in 
meeting drawings by member countries, re- 
lying less heavily on dollars and more 
heavily on the currencies of countries with 
payments surpluses. However, the Fund's 
regular holdings of the currencies of some 
important industrial countries are not ade- 
quate to meet potential demands for them. 

In a message to the Congress last Febru- 
ary, I said: "We must now, in cooperation 
with other lending countries, begin to con- 
sider ways in which international monetary 
institutions — especially the International 
Monetary Fund — can be strengthened and 
more effectively utilized, both in furnishing 
needed increases in reserves, and in provid- 
ing the flexibility required to support a 
healthy and growing world economy." 

We have now taken an important step 
in this direction. Agreement has been 
reached among ten of the major industrial 
countries to lend to the Fund specified 
amounts of their currencies when necessary 
to cope with or forestall pressures which may 
impair the international monetary system. 
These stand-by facilities of $6 billion will be 
a major defense against international mone- 
tary speculation and will powerfully rein- 
force the effectiveness of the Fund. They 
will provide resources to make our drawing 
rights in the Fund effective, should we need 
to use them. Moreover, the U.S. stand-by 
commitment of $2 billion will augment the 
resources potentially available through the 
Fund to other participants in the agreement, 
when our balance of payments and reserve 



50 



John F, Kennedy, 1^62 



Jan. 22 [16] 



positions are strong. I shall shortly submit 
a request to Congress for appropriate 
enabling legislation. 

Prices and Wages 

Prices and production need not travel to- 
gether. A number of foreign countries have 
experienced both rapid grow^th and stable 
prices in recent years. We ourselves, in 
1 96 1, enjoyed a stable price level during a 
brisk economic recovery. 

While rising prices will not necessarily 
accompany the expansion we expect in 1962, 
neither can we rely on chance to keep our 
price level stable. Creeping inflation in the 
years 1955-57 weakened our international 
competitive position. We cannot afford to 
allow a repetition of that experience. 

We do not foresee in 1962 a level of de- 
mand for goods and services which will 
strain the economy's capacity to produce. 
Neither is it likely that many industries will 
find themselves pressing against their ca- 
pacity ceilings. Inflationary pressures from 
these sources should not be a problem. 

But in those sectors where both companies 
and unions possess substantial market power, 
the interplay of price and wage decisions 
could set off a movement toward a higher 
price level. If this were to occur, the whole 
Nation would be the victim. 

I do not believe that American business 
or labor will allow this to happen. All of 
us have learned a great deal from the eco- 
nomic events of the past 15 years. Among 
both businessmen and workers, there is 
growing recognition that the road to higher 
real profits and higher real wages is the road 
of increased productivity. When better 
plant and equipment enable the labor force 
to produce more in the same number of 
hours, there is more to share among all the 
contributors to the productive process — and 
this can happen with no increase in prices. 
Gains achieved in this manner endure, while 
gains achieved in one turn of the price-wage 
spiral vanish on the next. 

The Nation must rely on the good sense 



and public spirit of our business and labor 
leaders to hold the line on the price level 
in 1962. If labor leaders in our major in- 
dustries will accept the productivity bench- 
mark as a guide to wage objectives, and if 
management in these industries will prac- 
tice equivalent restraint in their price deci- 
sions, the year ahead will be a brilliant 
chapter in the record of the responsible exer- 
cise of freedom. 



MEASURES FOR A STRONGER ECONOMY 

The final section of my Report is a sum- 
mary of my recommendations for legislative 
action (i) to strengthen our defenses against 
recession, (2) to strengthen our financial 
system, (3) to strengthen our manpower 
base, and (4) to strengthen our tax sys- 
tem. 

A Program for Sustained Prosperity 

Recurrent recessions have thrown the post- 
war American economy off stride at a time 
when the economies of other major indus- 
trial countries have moved steadily ahead. 
To improve our future performance I urge 
the Congress to join with me in erecting a 
defense-in-depth against future recessions. 
The basic elements of this defense are (i) 
Presidential stand-by authority for prompt, 
temporary income tax reductions, (2) Presi- 
dential stand-by authority for capital im- 
provements expenditures, and (3) a per- 
manent strengthening of the unemployment 
compensation system. These three measures 
parallel important proposals of the Com- 
mission on Money and Credit, whose further 
recommendations are treated under the next 
heading. 

In our free enterprise economy, fluctua- 
tions in business and consumer spending 
will, of course, always occur. But this need 
not doom us to an alternation of lean years 
and fat. The business cycle does not have 
the inevitability of the calendar. The Gov- 
ernment can time its fiscal transactions to 



51 



[i6] Jan. 22 



Public Papers of the Presidents 



offset and to dampen fluctuations in the 
private economy. Our fiscal system and 
budget policy already contribute to economic 
stability, to a much greater degree than be- 
fore the war. But the time is ripe, and the 
need apparent, to equip the Government to 
act more promptly, more flexibly, and more 
forcefully to stabilize the economy — to carry 
out more effectively its charge under the 
Employment Act. 

Stand-by tax reduction authority. First, 
I recommend the enactment of stand-by 
authority under which the President, subject 
to veto by the Congress, could make prompt 
temporary reductions in the rates of the 
individual income tax to combat recessions, 
as follows: 

(i) Before proposing a temporary tax re- 
duction, the President must make a finding 
that such action is required to meet the ob- 
jectives of the Employment Act. 

(2) Upon such finding, the President 
would submit to Congress a proposed tem- 
porary uniform reduction in all individual 
income tax rates. The proposed temporary 
rates may not be more than 5 percentage 
points lower than the rates permanendy es- 
tablished by the Congress. 

(3) This change would take effect 30 
days after submission, unless rejected by a 
joint resolution of the Congress. 

(4) It would remain in effect for 6 
months, subject to revision or renewal by 
the same process or extension by a joint 
resolution of the Congress. 

(5) If the Congress were not in session, 
a Presidentially proposed tax adjustment 
would automatically take effect but would 
terminate 30 days after the Congress re- 
convened. Extension would require a new 
proposal by the President, which would be 
subject to congressional veto. 

A temporary reduction of individual in- 
come tax rates across the board can be a 
powerful safeguard against recession. It 
would reduce the annual rate of tax collec- 
tions by $2 billion per percentage point, or 
a maximum of $10 billion — ^$1 billion per 



point, or a $5-billion maximum, for six 
months — at present levels of income. These 
figures should be measured against the costs 
they are designed to forestall: 

— the tens of billions of potential output 
that run to waste in recession; 

— the pain and frustration of the millions 
whom recessions throw out of v»ork; 

— the Budget deficits of $12.4 billion in 
fiscal 1959 or $7.0 billion this year. 

The proposed partial tax suspension 
would launch a prompt counterattack on the 
cumulative forces of recession. It would be 
reflected immediately in lower withholding 
deductions and higher take-home pay for 
millions of Americans. Markets for con- 
sumer goods and services would prompdy 
feel the stimulative influence of the tax 
suspension. 

It would offer strong support to the 
economy for a timely interval, while pre- 
serving the revenue-raising powers of our 
tax system in prosperity and the wise tradi- 
tional procedures of the Congress for mak- 
ing permanent revisions and reforms in the 
system. I am not asking the Congress to 
delegate its power to levy taxes, but to 
authorize a temporary and emergency sus- 
pension of taxes by the President — subject 
to the checkrein of Congressional veto — ^in 
situations where time is of the essence. 

Stand-by capital improvements authority. 
Second, I recommend that the Congress 
provide stand-by authority to the President 
to accelerate and initiate up to $2 billion of 
appropriately timed capital improvements 
when unemployment is rising, as follows: 

( i) The President would be authorized to 
initiate the program within two months after 
the seasonally adjusted unemployment rate 

(a) had risen in at least three out of four 
months (or in four out of six months) and 

(b) had risen to a level at least one per- 
centage point higher than its level four 
months (or six months) earlier. 

(2) Before invoking this authority, the 
President must make a finding that current 
and prospective economic developments re- 



52 



John F. Kennedy, 1962 



Jan. 22 [16] 



quire such action to achieve the objectives 
of the Employment Act. 

(3) Upon such finding, the President 
would be authorized to commit 

. (a) up to $750 million in the acceleration 
of direct Federal expenditures previously 
authorized by the Congress, 

(b) up to $750 million for grants-in-aid 
to State and local governments, 

(c) up to $250 million in loans to States 
and localities w^hich would otherwise be un- 
able to meet their share of project costs, and 

(d) up to I250 million additional to be 
distributed among the above three cate- 
gories as he might deem appropriate. 

(4) The authority to initiate new projects 
under the capital improvements program 
would terminate automatically within 12 
months unless extended by the Congress — 
but the program could be terminated at any 
time by the President. 

(5) Grants-in-aid would be made under 
rules prescribed by the President to assure 
that assisted projects (a) were of high prior- 
ity, (b) represented a net addition to existing 
State and local expenditures, and (c) could 
be started and completed quickly. 

(6) Expenditures on Federal projects pre- 
viously authorized by the Congress would 
include resource conservation and various 
Federal public works, including construc- 
tion, repair, and modernization of public 
buildings. 

(7) After the program had terminated, 
the authority would not again be available 
to the President for six months. 

The above criteria would have permitted 
Presidential authority to be invoked in the 
early stages of each of the four postwar re- 
cessions — within four months after the de- 
cline had begun. Furthermore, no false sig- 
nals would have been given. Were a false 
signal to occur — for example, because of a 
strike — the audiority, which is discretionary, 
need not be invoked. 

The first impact of the accelerated orders, 
contracts, and outlays under the program 
would be felt within one to two months 



after the authority was invoked. The major 
force of the program would be spent well 
before private demand again pressed hard 
on the economy's capacity to produce. With 
the indicated safeguards, this program would 
make a major contribution to business ac- 
tivity, consumer purchasing power, and em- 
ployment in a recession by utilizing for 
sound public investment resources that 
would otherwise have gone to waste. 

Unemployment compensation. Third, I 
again urge the Congress to strengthen per- 
manently our Federal-State system of un- 
employment insurance. My specific recom- 
mendations include 

(i) Extension of the benefit period by as 
much as 13 weeks for workers with at least 
three years of experience in covered 
employment; 

(2) Similar extension of the benefit pe- 
riod when unemployment is widespread for 
workers with less than three years of experi- 
ence in covered employment. This provi- 
sion could be put into effect by Presidential 
proclamation when insured unemployment 
reaches 5 percent, and the number of benefit 
exhaustions over a three-month period 
reaches i percent of covered employment; 

(3) Incentives for the States to provide 
increased benefits, so that the great majority 
of covered workers will be eligible for weekly 
benefits equal to at least half of their average 
weekly wage; 

(4) Extension of coverage to more than 
three million additional workers; 

(5) Improved financing of the program 
by an increase in the wage base for the pay- 
roll tax from $3,000 to $4,800; 

(6) Reinsurance grants to States experi- 
encing high unemployment insurance costs; 

(7) Provisions which permit claimants to 
attend approved training or retraining 
courses without adverse effect on eligibility 
for benefits. 

Wider coverage, extended benfefit periods, 
and increased benefit amounts will help so- 
ciety discharge its obligation to individual 
unemployed workers. And by maintaining 



53 



[i6] Jan. 22 



Public Papers of the Presidents 



more adequately their incomes and purchas- 
ing power, these measures will also buttress 
the economy's built-in defenses against re- 
cession. Temporary extensions of unemploy- 
ment compensation benefits have been voted 
by the Congress during the last two reces- 
sions. It is time now for permanent legis- 
lation to bring this well-tested stabilizer more 
smoothly into operation when economic ac- 
tivity declines. 

In combination, these three measures will 
enable Federal fiscal policy to respond firmly, 
flexibly, and swiftly to oncoming recessions. 
Working together on this bold program, the 
Congress and the Executive can make an 
unprecedented contribution to economic sta- 
bility, one that will richly reward us in fuller 
employment and more sustained growth, and 
thus, in greater human well-being and 
greater national strength. 

Strengthening the Financial System 

Proposals of the Commission on Money 
and Credit, The Report of the Commission 
on Money and Credit, published last year, 
raises important issues of public policy relat- 
ing to (i) the objectives and machinery of 
Government for economic stabilization and 
growth, (2) Federal direct lending and 
credit guarantee programs, and (3) the 
structure and regulation of private financial 
institutions and markets. The Commis- 
sion's Report represents the results of thor- 
ough analysis and deliberation by a private 
group of leading citizens representative of 
business, labor, finance, agriculture, and the 
professions. The Commission's findings and 
recommendations deserve careful considera- 
tion by the Congress, the Executive, and the 
public — consideration which should result 
in legislative and executive actions to 
strengthen government policy under the 
Employment Act and to improve the finan- 
cial system of the United States. The sub- 
jects covered by the Commission can — ^for 
the purposes of discussion and action in the 
Government — usefully be divided into four 
categories. 



(i) To strengthen the instruments of 
policy for economic stabilization, the Com- 
mission recommends permanent improve- 
ment of unemployment compensation, 
flexibility in government capital expendi- 
tures, and flexibility in adjusting the basic 
Federal individual income tax rate. These 
key proposals are reflected in the three-part 
anti-recession program just described. 

(2) In its comprehensive new look at ex- 
isting financial legislation, the Commission 
concludes that the following financial re- 
strictions no longer serve the purposes 
originally intended and unnecessarily com- 
plicate or obstruct other government policies: 
the ceiling on the public debt, the ceiling on 
permissible interest rates on U.S. Treasury 
bonds, and the required gold reserve against 
Federal Reserve notes and deposits. I am 
sure that the Congress will wish to examine 
carefully the Commission's recommenda- 
tions on these points. 

(3) The Commission re-examines the 
structure of the Federal Reserve System and 
its relationship to other arms of the Federal 
Government. The desirability of proposed 
changes in the structure which has evolved 
over the years can be determined only after 
extensive consideration by the Congress and 
by the public. 

There are two reforms of clear merit on 
which there appears to be sufficiendy gen- 
eral agreement to proceed at once, and 
which are of direct concern to the President 
in the exercise of his responsibility to ap- 
point the members and officers of the Board 
of Governors of the Federal Reserve System. 

The first is to give adequate recognition 
in the simple matter of salaries to the im- 
portant responsibilities of the Board of Gov- 
ernors of the Federal Reserve System. The 
United States is behind other countries in 
the status accorded, by this concrete symbol, 
to the leadership of its "central bank," and 
I urge that the Congress take corrective 
action. 

The second is to revise the terms of the 
officers and members of the Board so that a 



54 



]ohn F. Kennedy, 1962 



Jan. 22 [16] 



new President will be able to nominate a 
Chairman of his choice for a term of four 
years coterminous with his own. This 
change has the concurrence of the present 
Chairman of the Board of Governors. The 
current situation — under which the four- 
year term of the Chairman is not synchro- 
nized with the Presidential term — appears 
to be accidental and inadvertent. 

Provision should be made now for smooth 
transition to new arrangements to take 
effect in 1965. I suggest that, on the ex- 
piration of the present term of the Chairman 
in April 1963, the next term expire on Janu- 
ary 31, 1965. In order that, starting in 1965, 
the President may have a free choice when 
he begins his own term, it is also necessary to 
provide that the terms of members of the 
Board — which now begin and end on Janu- 
ary 31 of even years — begin and end in odd 
years. This change can be accomplished 
very easily by extending the terms of pres- 
ent members by one year. 

(4) Several of the Commission's recom- 
mendations require careful appraisal by 
the affected agencies in the Executive 
Branch as a basis for future legislative 
recommendations : 

(a) Banks and other private financial 
institutions: The Commission proposes sig- 
nificant changes in the scope and nature of 
government regulations concerning reserves, 
portfolios, interest rates, and competition. 
I shall ask an interagency working group in 
the Executive Branch to examine the com- 
plex issues raised by these proposals. This 
interagency group will keep in close touch 
with the relevant committees of the Con- 
gress, which will no doubt wish to study 
these issues simultaneously. 

(b) Federal lending and loan guarantee 
programs: It is clearly time for a thorough 
review of both their general impact on the 
economy and their effectiveness for the spe- 
cial purposes for which they were estab- 
lished. Again the Commission's Report has 
performed a valuable service in illuminating 
basic problems. One important question is 



the appropriate role — with account taken of 
both effectiveness and budgetary cost — of 
direct Federal lending, loan guarantees, and 
interest sharing. I shall ask a second inter- 
agency group in the Executive Branch to 
examine these programs. 

(c) Corporate pension funds and other 
private retirement programs: It is time for 
a reappraisal of legislation governing these 
programs. They have become, in recent 
years, a major custodian of individual sav- 
ings and an important source of funds for 
capital markets. The amendment to the 
Welfare and Pension Plans Disclosure Act 
which I recommend below will be an im- 
portant step toward insuring fidelity in the 
administration of these Plans. But there is 
also need for a review of rules governing the 
investment policies of these funds and the 
effects on equity and efficiency of the tax 
privileges accorded them. I shall ask a 
third working group of relevant Depart- 
ments and agencies to recommend needed 
actions in this field, taking into account the 
findings of the Commission as well as other 
studies and proposals. 

A revision of silver policy. Silver — a sick 
metal in the 1930's — is today an important 
raw material for which industrial demand is 
expanding steadily. It is uneconomic for the 
U.S. Government to lock up large quantities 
of useful silver in the sterile form of currency 
reserves. Neither is any constructive pur- 
pose served by requiring that the Treasury 
maintain a floor under the price of silver. 
Silver should eventually be demonetized, 
except for its use in coins. 

(i) As a first step in freeing silver from 
government control, the Secretary of the 
Treasury at my direction suspended sales 
of silver on November 29. This order 
amounted to the withdrawal of a price ceil- 
ing on silver which had been maintained by 
Treasury sales at a fixed price. 

(2) The next step should be the with- 
drawal of the Treasury's price floor under 
domestically produced silver. Accordingly, 
I recommend repeal of the Acts relating to 



55 



[i6] Jan. 22 



Public Papers of the Presidents 



silver of June 19, 1934, July 6, 1939, and 
July 31, 1946; this step will free the Treasury 
from any future obligation to support the 
price of silver. 

(3) I also recommend the repeal of the 
special 50 percent tax on transfers of interest 
in silver; this step will foster orderly price 
movements by encouraging the development 
of a futures market in silver. 

(4) Finally, I recommend that the Fed- 
eral Reserve System be authorized to issue 
Federal Reserve notes in denominations of 
$1; this will make possible the gradual with- 
drawal from circulation of $1 and $2 silver 
certificates, and the use of the silver thus 
released for coinage purposes. 

Strengthening Our Manpower Base 

The labor force of the United States is its 
most valuable productive resource. Meas- 
ures which enhance the skills and adapt- 
ability of the working population contribute 
to the over-all productivity of the economy. 
Several legislative proposals to serve these 
ends have already been put before the 
Congress. 

(1)1 urge speedy passage of the proposed 
Manpower Development and Training Act. 
A growing and changing economy demands 
a labor force whose skills adapt readily to 
the requirements of new technology. When 
adaptation is slow and occupational lines 
rigid, individuals and society alike are the 
losers. Individuals take their loss in the 
form of prolonged unemployment or sharply 
reduced earning power. Society's loss is 
measured in foregone output. These are 
losses we need not suffer. A few hundred 
dollars invested in training or retraining an 
unemployed or underemployed worker can 
increase his productivity to society by a 
multiple of that investment — quite apart 
from the immeasurable return to the worker 
in regaining a sense of purpose and hope. 
Both compassion and doUars-and-cents rea- 
soning speak for this legislation. 

(2) For the same reasons, I urge enact- 
ment of the Youth Employment Opportuni- 



ties Act. This bill provides three types of 
pilot programs to give young people em- 
ployment opportunities which would enable 
them to acquire much-needed skills. These 
programs include training, employment in 
public service jobs with public and private 
nonprofit agencies, and the establishment of 
Youth Corps Conservation Camps. In the 
current decade, young men and women will 
be entering the labor force in rapidly grow- 
ing numbers. They will expect, and they 
deserve, opportunities to acquire skills and 
to do useful work. The price of failure is 
frustration and disillusion among our youth. 
This price we are resolved not to pay. 

(3)1 have already made my recommenda- 
tions for improvement of the Federal-State 
unemployment compensation system. 

(4) I am asking the Congress for more 
funds to increase the effectiveness of the 
U.S. Employment Service. This important 
agency has already strengthened its opera- 
tions, improving its staff and placement 
services particularly in the largest urban 
centers, and concentrating on labor market 
problems of nationwide significance — espe- 
cially those connected with technological dis- 
placement of adult workers and the emj)loy- 
ment of youth. But the matching of jobs 
and workers is especially difficult and espe- 
cially important in a rapidly changing econ- 
omy, and more can be done. When unfilled 
jobs and qualified unemployed workers co- 
exist — but do not make contact because the 
flow of job information is not sufficiendy 
free — the employer, the worker, and the 
country lose. I urge the Congress to reduce 
that loss in the most effective way — by re- 
vitalizing further the agency charged with 
disseminating information about job oppor- 
tunities and willing workers. 

(5) I ask for enactment of the pending 
proposal to amend the Welfare and Pension 
Plans Disclosure Act so as (a) to provide 
adequate penalties for embezzlement and 
(b) to vest authority in a responsible Fed- 
eral agency to enforce the statute by issuing 
binding regulations, prescribing uniform re- 



56 



]ohn F. Kennedy, 7962 



Jan. 22 [16] 



porting forms, and investigating violations. 
Almost 90 million people rely on some v^el- 
fare and pension plan for part or all of 
present or future income. These plans are 
a major support of the economic security of 
the American people. We are derelict if v^e 
do not provide adequate administrative and 
enforcement provisions to protect the tre- 
mendous financial interest of participants in 
these funds. 

Strengthening Our Tax System 

The tax system of the United States has 
consequences far beyond the simple raising 
of revenue. The tax laws are a vital part 
of the economic environment; their effects 
may be equitable or inequitable; they create 
incentives w^hich may help or handicap the 
national interest. We cannot safely ignore 
these important effects in the comforting 
illusion that v^hat already exists is perfect. 
We must scrutinize our tax system carefully 
to insure that its provisions contribute to the 
broad goals of full employment, growth, and 
equity. 

My legislative proposals in the tax field 
are direcdy related to these goals and the 
corollary need for improvement in the bal- 
ance of payments. In particular, I urge the 
earliest possible enactment of the tax pro- 
posals now before the House Committee on 
Ways and Means. The centerpiece of these 
proposals is the 8 percent tax credit against 
tax for gross investment in depreciable 
machinery and equipment. The credit 
should be retroactive to January i, 1962. 
The tax credit increases the profitability of 
productive investment by reducing the net 
cost of acquiring new equipment. It will 
stimulate investment in capacity expansion 
and modernization, contribute to the growth 
of our productivity and output, and increase 
the competitiveness of American exports in 
world markets. 

The tax credit for investment is in part 
self-financing. The stimulus it provides to 
new investment will have favorable effects 
on the level of economic activity during the 



year, and this will in turn add to Federal 
revenues. My other proposals for tax re- 
form are designed to improve the equity 
and efficiency of the tax system and will off- 
set the remaining net revenue loss: 

(i) Extension of the withholding princi- 
ple to dividend and interest income; 

(2) Repeal of the $50 dividend exclusion 
and the 4 percent dividend credit; 

(3) Revision of the tax treatment of busi- 
ness deductions for entertainment, gifts, and 
other expenses, to stop abuses of "expense- 
account living"; 

(4) Elimination of the special tax pref- 
erence for capital gains from the sale of 
depreciable property, real and personal; 

(5) Removal of unwarranted preferences 
(a) to cooperatives, (b) to mutual fire and 
casualty insurance companies, and (c) to 
mutual savings banks and savings and loan 
associations; and 

(6) Revision of the tax treatment of for- 
eign income, to remove defects and in- 
equities in the law. Removal of the 
unwarranted incentive to the export of 
capital will be consistent with the efficient 
distribution of capital resources in the world 
and will aid our balance of payments posi- 
tion. Tax deferral privileges should be lim- 
ited to profits earned in less developed 
countries, and opportunities for "tax haven" 
operations should be eliminated. 

In addition, I recommend that the corpo- 
rate income tax and certain excise taxes again 
be extended at present levels for another 
year beyond June 30, 1962, except that the 
structure of taxes and user charges in the 
transportation field be altered as proposed 
in my Budget Message. 

In considering tax revision in the United 
States, we must not limit ourselves simply 
to Federal taxation. Our States, counties, 
and municipalities collect nearly half as 
much tax revenue as the Federal Govern- 
ment. There is great potential for equity 
or inequity, for incentive or disincentive, in 
their highly diverse tax systems. In addi- 
tion, the effectiveness of Federal tax policies 



715-405 0—64- 



57 



[i6] Jan. 22 



Public Papers of the Presidents 



can be enhanced by harmonious coordina- 
tion with State and local fiscal systems. 
There is wide latitude for improvements in 
the coordination of tax systems and in 
operations with intergovernmental implica- 
tions. In this effort, the Advisory Com- 
mission on Intergovernmental Relations is 
performing a valuable service. I urge care- 
ful study of its recommendations at all 
levels of government. 

Later this year, I shall present to the Con- 
gress a major program of tax reform. This 
broad program will re-examine tax rates and 
the definition of the income tax base. It 
will be aimed at the simplification of our tax 
structure, the equal treatment of equally 
situated persons, and the strengthening of 



incentives for individual effort and for 
productive investment. 

The momentum of our economy has been 
restored. This momentum must be main- 
tained, if the full potential of our free 
economy is to be released in the service of 
the Nation and the world. In this Report 
I have proposed a program to sustain our 
prosperity and accelerate our growth — in 
short, to realize our economic potential. In 
this undertaking, I ask the support of the 
Congress and the American people. 

John F. Kennedy 

note: The message and the complete report (300 
pp.) are published in "Economic Report of the 
President, 1962" (Government Printing Office, 
1962). 



17 Statement by the President Concerning the Dominican RepubUc. 
]anuary 22, 1962 



THE GOVERNMENT of the United States 
is encouraged by the present trend in the 
Dominican RepubUc, and the steps taken 
toward the restoration of orderly democratic 
processes in that country. The Dominican 
Republic people have gone through a difficult 
period which has had unfavorable, though 
temporary, economic repercussions. I have 
reviewed these problems with the United 



States Coordinator for the Alliance for 
Progress, Mr. Teodoro Moscoso, who, along 
with other experts, recently visited the Do- 
minican Republic at my request. 

As a result of this review and in view of 
the urgent nature of the Dominican Re- 
public's balance of payment situation, the 
United States is willing to make available 
up to $25 million as emergency credit. 



18 Exchange of Letters With Ronald Ngala Following U.S. Disaster 
Assistance to Kenya. ]anuary 22, 1962 

[ Released January 22, 1962. Dated January 20, 1962 ] 



Dear Mr. Ngala: 

Thank you for your very kind letter re- 
garding American famine relief for Kenya. 

The American people were deeply moved 
by the reports of the suffering caused by the 
prolonged drought and the recent disastrous 
floods. 

We are most happy to know that our food 
and assistance were timely and did much to 
alleviate the intense hardship caused by these 
disasters. I very much appreciate your 



thoughtfulness in writing to me on this 
matter. 

Sincerely, 

John F. Kennedy 

[The Honorable Ronald Ngala, Leader of the House, 
Nairobi, Kenya] 

note: Mr. Ngala*s letter, dated November 30, 1961, 

follows: 

Dear Mr, President, 

On behalf of the Government of Kenya, I would 
like to offer our most heartfelt thanks for all that 



58 



John F. Kennedy, 7962 



Jan. 23 [19] 



your Government has done to assist us in famine 
relief. The misery and suffering that has been 
caused by this terrible disaster has been gready 
alleviated by the generosity of the United States 
of America. 

Three-hundred thousand bags of Maize virhich 
we have received, together with proportionate 



amounts of Milk Powder and Edible Oil, to say 
nothing of the free use of Hercules aircraft of the 
United States Air Force, amounts to an incredibly 
generous contribution. 

I would like to convey our deepest gratitude. 
Yours sincerely, 

R. G. Ngala 



19 Remarks to the National Conference on Milk and Nutrition. 
January 23, 1962 



Mr. Secretary, ladies and gentlemen: 

I want to express my appreciation to all 
of you for participating in this Conference, 
which I think is most important to our 
farmers and to our country. 

And I want to say a few words this morn- 
ing about a very important subject to us all, 
and that is milk. Almost every State pro- 
duces milk. It provides twice the cash in- 
come for our farmers as any other basic 
crop. It is our most nourishing food, and 
last year we consumed either in the form 
of milk or in the form of butter, cheese, or 
ice cream, 125 billion pounds of dairy 
products, but in the year before, we con- 
sumed between two and three billion pounds 
more. At the same time our population in- 
creased 1.7 percent, and milk production, in 
an effort to keep pace with population pro- 
duction, increased i J4 percent. And in that 
same time milk consumption declined 2j^ 
percent. 

This is a serious matter for us all. It is 
serious for the dairy industry, for all of our 
farmers, and for the United States. First, it 
is a matter of concern because it implies poor 
nutrition and a less balanced diet. Secondly, 
it presents problems in the area of the man- 
agement of our milk production that will 
require adjustment. 

We cannot continue to accumulate dairy 
products in still larger inventories, nor can 
we embark upon a policy that will jeopardize 
the economic interests of so large a segment 
of our farm population. For there is a 
close relationship between prosperity on the 
farm and prosperity in the city — ^between 
the economic health of our farm community 
and the economic health of our Nation. 



Third, the drop in milk consumption has 
serious implications for the best use of those 
soil, water, and animal resources that are 
now involved in dairy production. 

I doubt that anyone can be sure of the 
reasons for this sudden drop in consumption. 
We only know that the slow decline in con- 
sumption over a period of time became im- 
mediate and precipitous last year. 

I have long been convinced that milk is 
an important aid to good health. This has 
led me to direct that milk be served at every 
White House meal from now on — and I 
expect that all of us will benefit from it. 

If we are to be a vigorous and vital nation, 
as we all desire, then of course we must de- 
pend upon the consumption of a balanced 
diet, and milk must be a part of it. 

I am aware that there has been a good 
deal of public discussion about the effect of 
radioactive fallout upon our food supply. 
Most of the discussion has unfortunately 
used milk as an example of food products 
that might be contaminated. This recog- 
nizes the importance of milk in our daily 
diet, but it has the unfortunate effect of 
causing an identification in the minds of 
some between fallout and milk. 

I should like to correct any misunder- 
standings that may exist about this. The 
Public Health Service and other agencies 
have been instructed to keep the problems of 
fallout in food under constant surveillance. 
Detailed guidelines to protect the health of 
the people against radiation have been de- 
veloped by the Federal Radiation Council. 
It is abundantly clear that for the foreseeable 
future there is no danger from the present 
amount of exposure. The milk supply offers 



59 



[ip] Jan. 23 



Public Papers of the Presidents 



no hazards. On the contrary, it remains one 
of the best sources of nutrition for our chil- 
dren and for adults — and I hope that the 
American people will appreciate this more 
and more as time goes on. 

In addition, the Food and Nutrition 
Board of the National Research Council has 
concluded, after intensive research, that the 
association of milk consumption and 
coronary disease due to an increase in 
cholesterol level has not bedn sufficiently 
established to justify the abandonment of 
this nutritious element, except v^here doctors 
have individually prescribed special diets for 
those found to be susceptible to special 
cholesterol or coronary problems. 

In the past 50 years our children have 
grow^n more vigorous and sturdy because of 
better diet and better health. Our young 
adults are nov7 about 2 inches taller than 
they were half a century ago. I should 
like — and I am sure all of us would like — 
to see this trend continue. A large propor- 
tion of our people now attain a physical 
condition once attained by a very few, but 
nutritionists tell us that 10 percent of our 
people still have an inadequate diet. The 
most serious deficiencies, I am told, are in 
the very minerals and vitamins, such as 
calcium and Vitamin A, most prevalent in 
milk. I am sure all of us would like to see 
this nutritional gap narrowed. 

Those who are familiar with the needs 
and the problems of our older citizens, also 



tell us that older people need more calcium 
than they now get. Again, milk offers the 
best and most economical source of this vital 
mineral. 

There are many children today who do 
not participate in the school milk and the 
school lunch programs, because their schools 
do not and often cannot make them avail- 
able. Last year we expanded these pro- 
grams. I hope more and more children will 
be able to receive school milk and lunches 
in the days ahead. 

These programs find, I think, increasing 
support among the people of other nations. 
We have encouraged this development and 
will continue to do so. 

These are some of the areas which I hope 
this Conference will cover. I do not say 
that it is an easy matter that we are now 
faced with, but we do want to emphasize 
that this is a great productive resource of 
our country. We are rich in a very basic 
food. We are anxious to have the consump- 
tion of it increased as our population mounts, 
and I believe that this Conference will help 
bring attention of the public to what a 
valuable asset we have, and to make sure 
that we develop it more fully. 

And therefore I want to express my thanks 
to all of you for being here today. 

note: The President spoke at 10:30 a.m. in the 
Departmental Auditorium in Washington. His 
opening words "Mr. Secretary" referred to Orville 
L. Freeman, Secretary of Agriculture. 



20 The President's News Conference of 
January 24, 1962 



THE PRESIDENT. Good aftemoon. 

[i.] Q. Mr. President, the House Rules 
Committee, I understand, has just voted 
down your urban affairs bill. I wonder if 
in that view you plan to submit it again. 

THE PRESIDENT. Well, I wiU say this: It is 
my understanding that the House Rules 
Committee rejected by a vote of 9 to 6 the 
proposal which had come out, which we had 
sent up, and which had come out of 



the House Committee on Government 
Operations. 

I am somewhat astonished at the Republi- 
can leadership, which opposed this bill. It 
is my understanding that all of the Republi- 
can members of the Rules Committee op- 
posed the bill, I had gotten the impression 
2 weeks ago, after reading the reports from 
the meeting in Oklahoma, that they shared 
our concern for more effective management 



60 



]ohn F. Kennedy, 7962 



Jan. 24 [20] 



and responsibility of the problems of two- 
thirds of our population who live in the 
cities. These cities are expanding. They 
face many problems — housing, transporta- 
tion, and all the rest — which vitally affect 
our people. 

This is a most valuable and important 
proposal, and for that reason, therefore, I 
am going to send it to the Congress as a re- 
organization plan, and give every member 
of the House and Senate an opportunity to 
give their views and work their will on this. 
And we are going to send it up right away. 

[2.] Q. Mr. President, could you dis- 
cuss for us your general feelings about the 
limits which you feel should or should not 
be imposed on the public statements of mili- 
tary figures? Do you think that — what de- 
gree of review should be exercised over their 
public utterances? 

THE PRESIDENT. I must Say I don't think 
that we could do better than to read the 
remarks of three distinguished military of- 
ficers: General White's article in this week's 
Newsweek, Admiral Burke, a distinguished 
officer who is now retired, and General 
Lemnitzer, Chairman of the Joint Chiefs of 
Staff — all men of long experience, all men 
who understand the importance of the proper 
relationship between the military and the 
civilian. And I must say that after reading 
those three statements, I am strengthened in 
my conviction of the good judgment of Mr. 
Lovetts's words when he said that this flag 
looks redder to the bulls outside than it does 
inside. I think that — I commend those 
three statements to the military and to the 
civilians, and I think they set a very proper 
guidance. 

I'm glad this matter is being looked into 
by — particularly by a committee headed by 
Senator Stennis, who is an outstanding Sen- 
ator. I am sure that it will be useful. But 
I do think that the relationship which has 
existed for so many years, which provides for 
civilian control and responsibility, and the 
coordination of speeches which interpret 
Government policy, so that the United States 
speaks with force and strength — I believe 



that we should continue this very valuable 
policy which has been carried out in my 
predecessor's administration, and the prede- 
cessor before, of giving guidance on 
speeches, so that particularly when they are 
given by high governmental officials — I un- 
derstand 1200 speeches were submitted and 
given by the Defense Department, I think 
over 600 of them involved foreign policy 
matters, and were submitted to the De- 
partment of State. When I gave my State 
of the Union Address, I submitted that part 
dealing with foreign policy to the State De- 
partment for any comments, the part deal- 
ing with the Defense Department and 
national defense, to the Secretary of Defense 
for his comments. This is the way a govern- 
ment like ours, which is large and which 
deals with problems which are extremely 
important and sensitive, and which involve 
our relations around the world — this is the 
way we can coordinate and make effective 
expressions of our views. So that I am con- 
fident this hearing will be useful and it got 
off to a very good start with those three 
statements. In fact, the military seemed to 
me to appreciate the problem better than 
some civilians. [Laughter] 

[3.] Q. Mr. President, there are persist- 
ent reports that you have proposed that 
Eugene Black of the World Bank lend his 
good offices to India and Pakistan to settle 
the Kashmir dispute. Could you say if this 
is correct, sir, and what your hopes for suc- 
cess might be, if so? 

THE PRESIDENT. Well, I asked Mr. Black 
if he would undertake to see if a solution was 
possible in this most difficult and delicate 
problem. It creates international tensions, 
of course, since we are assisting both of the 
countries. We want our assistance to be 
used in a way which is most effective for the 
people. 

Obviously, peaceful relations between Pak- 
istan and India are in the interests of world 
peace and the interests that we seek to pro- 
mote. Mr. Black is widely regarded. He 
had a very successful period as negotiator 
on the Indus River matter and, therefore, he 

61 



[2o] Jan. 24 



Public Papers of the Presidents 



has generously consented, if it was decided 
by the parties involved that he could be 
helpful, to use his good offices, and I sug- 
gested that they consider this matter. 

[4.] Q. Mr. President, I w^onder if you 
could tell us what considerations, other than 
a tight schedule went into your brother's 
decision not to visit Moscow on his trip. 

THE PRESIDENT. I thought his Statement 
was as he described it. 

Q. Was there any feeling, Mr. President, 
that high level talks would be useful until 
they had made some more concilliatory move 
on Berlin? 

THE PREsmENT. No. I think the statement 
he gave was the reason. 

[5.] Q. Mr. President, there seems to be 
a feeling that you are in for a fight on your 
trade program. Could you say how you 
think this will develop, mostly along the 
economic lines, or sectional lines or political 
lines, or perhaps all three? 

THE PRESIDENT. It may be all three. I am 
hopeful that it will be certainly a bipartisan 
fight. I believe it will be. This matter re- 
ceived its first impetus from the report of 
Secretary Herter and Mr. Clayton. It — the 
general principles have been supported by 
people like Henry Cabot Lodge in his work 
with NATO and the Ariantic Council. It 
has been given a general support by Presi- 
dent Eisenhower. So that I am hopeful that 
it will be a matter of bipartisan concern. 

There will, of course, be sectional interests 
involved and there will be industrial interests 
involved, but I am hopeful about this be- 
cause I think the facts, the necessities and 
our interests are so much on the side of our 
program that I believe that the Congress 
will respond. 

[6.] Q. Mr. President, are you and your 
military advisers completely satisfied with 
the makeup and strength of NATO at the 
present time? 

THE PRESIDENT. Well, I think we can im- 
prove NATO. I think that it's important 
that we add to the conventional strength of 
NATO. We've been emphasizing that. 
We, ourselves, have increased our contribu- 



tion. I am hopeful that we can meet the 
targets which General Norstad stated as 
minimal if Western Europe is to be success- 
fully defended and also if we are to have, as 
I have said, an alternative between nuclear 
holocaust and retreat. So I think it could 
be strengthened. 

[7.] Q. Mr. President, in connection 
with the House Rules Committee vote, I 
wanted to ask you about an article that ap- 
peared this morning, and it was described 
as being based on an authorized interview 
with you. It included this sentence: "The 
President sees at the end of a year how 
nearly impossible it is to govern under the 
system of divided powers." Would you care 
to expand on that view? 

THE PRESIDENT. Ycs. I haven't given any 
authorized interview — [laughter] — but if 
you want to know my views, of course there 
is a difficulty between a Congress and a 
President, an executive. We are coordinate 
branches. There are different views, differ- 
ent interests. Perspectives are different from 
one end of Pennsylvania Avenue to the 
other. I was 14 — I've been 14 times longer 
at one end of it than I have been at the 
other, so I appreciate the Congress' 
responsibilities. 

I believe that on the particular issue that 
the Congress should speak its will because I 
believe it vitally important, particularly as 
these cities expand, they cross State lines. 
The mayors come to see us — and they've 
strongly supported this legislation. They 
move from department to department where 
their interests are assigned to different 
agencies under different conditions. This 
would be a very important step forward, and 
that's why I am going to follow a procedure 
of sending it to the Congress so that in this 
way we are bound to get a vote on it by the 
House and the Senate. 

[8.] Q. Mr. President, if you are able 
to create a Department of Urban Affairs and 
Housing, there have been numerous reports 
that you would appoint Robert Weaver to 
this Cabinet position. Would you care to 
comment on these reports? 



62 



John F. Kennedy, 7962 



Jan. 24 [20] 



THE PRESIDENT. Well, Mr. Weavcf is the 
head of the Housing Agency and he was 
chosen for that position because he had long 
experience. I think he has done an out- 
standing job. 

This would be the most important part of 
any new agency. If we did receive the 
authority, I would appoint Mr. Weaver to be 
the Secretary. 

[9.] Q. Mr. President, your brother 
Teddy, in Massachusetts, seems to be run- 
ning for something but none of us are very 
certain just what it is. Could you tell us if 
you have had an opportunity to discuss this 
with him and whether you can tell us the 
secret? 

THE PRESIDENT. Well, I think he's the 
man — ^he's the man who's running and he's 
the man to discuss it with. 

[10.] Q. Mr. President, assuming the 
American air bases in the Portuguese Azores 
are vital to our security, could you explain 
to us if you expect the Government will have 
any difHculty negotiating leases — renewed 
leases on those bases this year, especially in 
light of the report from Lisbon of our 
strained relations with Portugal? 

THE PRESIDENT. I think the Azores base is 
very important to us and to NATO and the 
negotiations will take place this year. We're 
hopeful that they will continue to permit us 
to use this base upon which 75 to 80 percent 
of our military air traffic to Europe depends, 
so that in these rather critical times in 
Europe that base is extremely important 
to us. 

I'm hopeful that it will be possible for us 
to reach an agreement with the Portuguese 
for continued use of it. But that's a matter 
which will be negotiated between the 
countries. 

[11.] Q. Mr. President, you said yester- 
day that more people ought to drink milk. 
None of the young marrieds I know of lay 
off it on account of radioactivity. They 
lay off it because they can hardly buy enough 
for the children, and not themselves, on 
account of the price. Now, how is it that 
with the butter priced off the table and milk 



so high they can't buy it, we have surpluses 
that we buy up and give away? 

THE PRESIDENT. The price of milk has 
not — well, I don't have the latest figures 
here — in the last 12 months, overall con- 
sumer prices have not materially increased. 
Perhaps — so that I'm not sure that the whole 
explanation of the drop within the last 12 
months, which has been quite sharp — in 
other words, the consumption has dropped 
by lYz percent, while the population was 
going up i^ percent, so that I don't feel, 
Mrs. Craig, even though I recognize that 
this is an important element, I don't believe 
it can be explained by price alone. We are 
attempting to make judgments as to what 
can be done to increase the consumption. I 
don't think that the dairy farmer, who aver- 
ages about, I think, 82 cents an hour, is 
being overcompensated for his work. So 
that while price obviously is a factor, it is 
not the total explanation. 

I was attempting to reassure on radio- 
active, and on the matter of — and also to see 
if we can stimulate it by example. Mr. Sal- 
inger drank it this morning — [laughter] — 
with no adverse effect. 

[12.] Q. Mr. President, do you have 
real prospects that your medical-care-f or-the- 
aged bill will come out of committee finally 
for a vote up or down by Congress at this 
session ? 

THE PRESIDENT. I have real hope that there 
will be a vote on the medical care for the 
aged this year, in the Congress, yes. 

[13.] Q. Mr. President, what is your 
view of the House amendment to the postal 
rate bill which would prohibit the Post Of- 
fice from distributing mail labeled as Com- 
munist propaganda? 

THE PRESIDENT. Well, I think it does not 
give the Attorney General — I just had the 
language here — it doesn't give the Attorney 
General very clear guidance as to what he's 
supposed to label Communist and political 
propaganda. Is he supposed to label news- 
papers that may be received or speeches, or 
whatever they may be, so that the language 
is somewhat vague? In addition, I think we 

63 



[2o] Jan. 24 



Public Papers of the Presidents 



want to realize that this is a reciprocal mat- 
ter. I think in the last 12 months, ending 
March 31, 1961, we sent — a total of 16 mil- 
lion pounds of mail of all types were sent to 
the Iron Curtain countries. A lot of it went 
to friends and relatives in Iron Curtain coun- 
tries, food packages and all of the rest, and 
we were only receiving 2,300,000 pounds. 

Now, there has been a drop in the amount 
of mail coming in from Communist coun- 
tries in the last few months, really since last 
spring. If there is also an effort made by the 
Communists to deny us ability to send mail, 
it*s going to present serious problems for a 
good many Americans who have been car- 
rying on correspondence with friends and 
relatives. Now, I know that that's not the 
purpose. I think the Senate should examine 
the language very clearly and make sure 
that it's effective and is responsive to our 
national needs, and determine whether the 
rather generalized instructions to the At- 
torney General fall within the necessity of 
legal precision. 

I think the American people are used to 
hearing all sides. I don't think that they are 
particularly impressed by a good deal of 
what I have seen of propaganda. We send 
a good deal of mail out and I want to be 
sure that our rights to send our mail and our 
views and our correspondence to all parts of 
the world are not interfered with. So that 
I think the Senate should look at it 
carefully. 

[14.] Q. Mr. President, in your com- 
ments on the statements about the military 
censorship issue, you make no reference to 
President Eisenhower's statement of yester- 
day. Would you care to comment on what 
he had to say? 

THE PRESIDENT. No. Everyone is giving 
their views. I've given mine. And my 
views are — I think I just gave them. Presi- 
dent Eisenhower is entitled to hold his views 
and express them. And as I say, I thought 
Mr. Lovett and these other three military 
hit it so precisely that I strongly endorse 
what they said, and I'm filled with apprecia- 
tion of the fact that three distinguished 



members of the military said it. 

[15.] Q. Mr. President, two well-known 
security risks have recently been put on a 
task force in the State Department to help 
reorganize the Office of Security. 

THE PRESIDENT. Well, now, who? 

Q. William Arthur Wieland, a well- 
known man who for over a year the 
State 

THE PRESIDENT. And who — uow I think, 
Mrs. McClendon, I think that — would you 
give me the other name? 

Q. Yes, sir — ^J. Clayton Miller. 

THE PRESIDENT. Right. Well, uow, I think 
the term — I would say that the term you've 
used to describe them is a very strong term 
which I would think that you should be pre- 
pared to substantiate. I am familiar with 
Mr. Miller's record because I happened to 
look at it the other day. He has been cleared 
by the State Department. In my opinion, 
the duties which he is now carrying out, he is 
fit for. And I have done that after Mr. Rusk 
and I both looked at the matter, so there- 
fore I cannot accept your description of him. 

Q. Did you both look at Mr. William 
Arthur Wieland, too? 

THE PRESIDENT. I am familiar with Mr. 
Wieland. I'm also familiar with his duties 
at the present time, and in my opinion, Mr. 
Miller and Mr. Wieland, the duties they 
have been assigned to, they can carry out 
without detriment to the interests of the 
United States, and I hope without detriment 
to their characters by your question. 

[16.] Q. Mr. President, considering that 
the one ingredient in all these radical right 
organizations seems to be anticommunism 
or possibly superpatriotism, would it be 
feasible or useful for you, or even for the 
Republican leaders, to appeal to these people 
to stop tilting at windmills and to make a 
common cause against the enemy? My 
question really is, do you think there is any 
merit in this idea? 

THE PRESIDENT. Well, I did attempt in my 
speech at Seattle, my speech in Los Angeles, 
and in other speeches to indicate what I con- 
sider to be the challenges that the United 



64 



John F. Kennedy, 7962 



Jan. 24 [20] 



States faces, and I would hope that — there 
have been others who have done the same 
thing and I think we should keep that up. 
And I am hopeful that we can turn the 
energies bf all patriotic Americans to the 
great problems that we face at home and 
abroad. The problems are extremely 
serious. I share their concern about the 
cause of freedom. But I do think that we 
ought to look at what the challenges are 
with some precision and not concern our- 
selves on occasions with matters such as 
character or integrity of the Chief Justice or 
other matters which are really not even in 
question. 

[17.] Q. Mr. President, it has been re- 
ported that you have indicated an interest 
in the provision of some sort of scholarship 
aid, perhaps something similar to the GI 
bill, for the reservists and National Guards- 
men that were recently called up. Could 
you give us a little clearer picture of your 
views? For example, would you favor 
something such as Senator Yarborough of 
Texas* cold war GI bill? 

THE PRESIDENT. Well now, ou the general 
question of whether we should have a special 
scholarship program for reservists or 
draftees, this is a matter that is being con- 
sidered. Senator Yarborough's bill was not 
in the administration's program on educa- 
tion this year. It involved a rather large 
sum of money, $350 million, at a time when 
we were making rather broad recommenda- 
tions for our education. But whether there 
should be some special program of selected 
scholarships which would be available for 
competition is a matter which we are look- 
ing at, and which I hope to discuss with 
Senator Yarborough. 

[18.] Q. Mr. President, as you have just 
emphasized, present strontium 90 levels in 
milk are certainly well within an acceptable 
range. But since milk is a major- source of 
calcium and adequate calcium in the body 
apparently does help prevent deposits of 
strontium 90 in bone, it has been suggested 
that strontium removal plants, such as the 
one developed by the Government might be 



adopted by all the dairy industry to provide 
the Nation with a nutritious as well as a 
radiation-free source of calcium. Would you 
give us your views on this? What would 
you think of it? 

THE PRESIDENT. My information is that — 
and I think, as I stated yesterday, that this 
has not reached a point where any action 
such as you've suggested is necessary. Milk 
is safe and can be drunk with strong con- 
viction that it's assisting health and not 
working against good health. Now, if the 
situation should ever change, we would in- 
form the American people and take ap- 
propriate action. But for the present, the 
cow itself, along with other factors, makes 
our milk very safe and useful to drink. 

Q. Yes, that is what I pointed out. The 
only thing is it has been suggested that many 
other foods are not as yet safe and do add 
to the strontium burden in the body, and 
if one has a calcium-free source that is free 
of contamination, this helps build up a re- 
sistance for these other things. It was sug- 
gested from that point of view rather than 
because it is dangerous now or even in the 
future. [Laughter] 

[19.] Q. Mr. President, in the face of 
your economic message urging both man- 
agement and labor to moderate their policy 
regarding price and wage increases, would 
you tell us how you feel about the elec- 
tricians union's contract in New York 
which calls for a 25-hour week? 

THE PRESIDENT. I Stated, I think at the 
Steelworkers convention, before I was 
elected, and I've stated since then, that I 
thought that the 40-hour week was the — 
in view of the many obligations that we 
had upon us at home and abroad, represented 
the national goal at this time. In addition, 
I've also stated that I thought that labor- 
management contracts should be settled 
within the realm of productivity increases, 
so that there would be a beneficial effect on 
price stability. 

Now, this contract did not meet either 
one of those two standards, and therefore I 
regretted it. 



65 



[2o] Jan. 24 



Public Papers of the Presidents 



[20.] Q. Mr. President, how do you feel 
or how does this Government feel about the 
political as distinct from the economic inte- 
gration of Western Europe? President 
de Gaulle has seemed to stress confedera- 
tion as distinct from federation, and the 
British don't seem to be very eager for a 
common parliament. What is this Govern- 
ment's position? 

THE PRESIDENT. Well, we support the 
Treaty of Rome, and of course that must be 
interpreted, and which is now a subject of 
negotiation between the Six, and will also 
be a subject of negotiation with the British, 
particularly because of their Commonwealth 
obligations and so on. So we'll have to 
wait to see how it evolves. But the general 
position of this administration, and the pre- 
vious one, was support of the Treaty of 
Rome, support of the integration of Europe, 
because as Europe is strengthened we are 
strengthened. So that while the details are 
matters, of course, of judgment for them, 
the general movement we believe to be in 
the interests of the Atlantic Community. 

[21.] Q. Mr. President, more than one- 
third of the Senate and several influential 
members of the House have petitioned you 
today seeking wider trade protection on 
textiles. In view of their importance to your 
trade fight in Congress, could you tell us 
how you plan to meet the request? 

THE PRESIDENT. Yes, I rcccived a letter 
today from both, a good many members of 
the House and the Senate in regard to the 
negotiations which are going to take place 
beginning next Monday, and they were 
anxious that in those negotiations, that we 
would be mindful of the desirability of main- 
taining a relationship between imports and 
national production. I believe last year's 
imports of textiles were around 7 percent — 
that's i960 — and they had gone from 4 per- 
cent to 7 percent from 1957 to i960, and then 
dropped to about 6 percent. I think that 
this was a request for us to be concerned 
about any agreement which might provide 
a substantial increase in textiles, and we are 
very mindful of that, and we recognize the 



effect of all of this upon the trade bill itself. 
So this is a matter of concern to us, too. 

[22.] Q. Mr. President, could you tell 
us what the United States hopes will emerge 
from the present conference at Punta del 
Este? 

THE PRESIDENT. Well, I think that what 
we — I think — will see emerge is an im- 
plementation of the — really rather an ef- 
fective statement of the concern that is felt 
by the people of Latin America and this 
country at the intrusion of communism into 
this — ^into our OAS family. And I'm con- 
fident that the negotiations that are now 
going on, and that the deliberations of the 
countries will be — will make their hostility 
to communism and totalitarianism very 
clear. 

[23.] Q. Mr. President, could you give 
us your views of the bill on educational tele- 
vision which is now pending in the House 
Rules Committee? 

THE PRESIDENT. I am sorry, I don't know 
enough about it to give you an informed 
opinion. 

[24.] Q. Mr. President, in a very ab- 
breviated interview this morning, the At- 
torney General said that the Government 
was looking into racketeering, the opera- 
tions of racketeering, racketeers, in the 
stock exchange. Could you give us — could 
you comment upon this problem or give us 
any indication of the extent of it? 

THE PRESIDENT. I think I would rather 
have you go back to the Attorney General 
on it. 

[25.] Q. Mr. President, in your speech 
out in Columbus, Ohio, you spoke of a 
fragmentation in the Communist bloc. 
Could you elaborate, tell us a little more 
about this trouble in the Red paradise? 

THE PRESIDENT. No, I did make a refer- 
ence in my State of the Union to the closer 
integration of the free world at a time when 
that particular trend had not been the most 
noticeable trend in other parts of the world. 
But I think that until the pattern of the 
future is clearer and relationships are more 
precise, a good deal of our information must 



6S 



John F. Kennedy, 1962 



Jan. 25 [21] 



necessarily be surmised, and I don t really 
feel it would be useful at this time to explore 
it in more detail. 

[26.] Q. Mr. President, it has been sug- 
gested by columnists and others that over 
the course of the past year you have become 
more conservative, particularly that you 
recognize that the country may not be ready 
for the full Democratic platform. Could 
you comment on this assessment and tell 
us if you have changed your view of the 
role of your leadership? 

THE PRESIDENT. No, I cousider the prog- 
ress we made last year in implementing the 



platform was very beneficial: minimum 
wage, social security, depressed areas, and 
all the others, advances in the field of foreign 
aid authorization. We have sent up a good 
many more programs this year that were 
suggested in the platform. And I feel we're 
making, and going to make, progress toward 
carrying out the commitments of the coun- 
try and the party. And we're staying at it. 
Reporter: Thank you, Mr. President. 

note: President Kennedy's twenty-first news con- 
ference was held in the State Department Audi- 
torium at 4 o'clock on Wednesday afternoon, 
January 24, 1962. 



21 Special Message to the Congress Reporting Settlement of the 1961 
Maritime Strike. January 25, 1962 



To the Congress of the United States: 

Pursuant to the Labor-Management Rela- 
tions Act, 1947, as amended, I am reporting 
to the Congress about the recent labor dis- 
pute in the maritime industry. 

A strike took place at 12:01 AM, June 16, 
1 96 1. Although only the ships in port and 
the employees on such ships were imme- 
diately affected, the dispute involved vir- 
tually all American shipping companies, 
some 70,000 employees and about 900 ships 
and affected the trade and commerce of 
every Adantic, Pacific and Gulf port in the 
United States. 

On June 26th, by Executive Order 10949, 
I established a Board of Inquiry, consisting 
of the Honorable David Cole, Chairman, 
Judge Samuel I. Rosenman and Professor 
James J. Healy, to inquire into the issues in- 
volved in the dispute and report to me on 
or before June 30th, in accordance with the 
provisions of Section 206 of the Labor- 
Management Relations Act, 1947, as 
amended. I subsequently extended the time 
for the submission of the initial report of 
the Board of Inquiry to July 3rd. 

That report concisely presented the facts 
with respect to the dispute and the positions 
of the parties as required by law. 



On July 3rd, acting on my instruction, the 
Attorney General filed a petition in the Dis- 
trict Court for the Southern District of New 
York seeking an injunction against the 
continuance of the strike. A hearing was 
held on the Government's motion for a 
temporary restraining order on July 3rd, and 
the Court, after finding that the strike af- 
fected a substantial portion of the maritime 
industry, and that it would imperil the na- 
tional health and safety if permitted to con- 
tinue, temporarily restrained the strike 
activities until July 8th. A stay of that order 
sought immediately by the unions was de- 
nied by Circuit Judge Clark. {United 
States V. National Marine Engineers* Bene- 
ficial Association, et al,, 292 F. 2d 190, CA 2, 
July 8, 1961.) 

A hearing was held on the Government's 
motion for a preliminary injunction on 
July 7th, and the temporary restraining order 
was extended until July 12th. Two days 
before this order was to expire, the Court 
found that it had been "abundantly and 
overwhelmingly established" that the strike 
was affecting a substantial portion of the 
industry, and if permitted to continue would 
imperil the national health and safety. In 
addition, it rejected the contention of the 



67 



[21 ] Jan. 25 



Public Papers of the Presidents 



National Maritime Engineers' Beneficial 
Association and the International Organiza- 
tion of Masters, Mates and Pilots that, 
because their membership consists of 
"supervisors," their participation in the 
strike could not be enjoined. {United 
States V. National Maritime Union of 
America, et aL, 196 F. Supp. 374, S.D.N. Y., 
July 10, 1961.) 

The unions appealed to the U.S. Court 
of Appeals, Second Circuit, which, in an 
opinion issued August 22nd, affirmed the 
lower court's decision. (United States v. 
National Marine Engineers' Beneficial As- 
sociation, et aL, 294 F. 2d 385 CA 2.) 

Pursuant to Section 209(b) of the Labor- 
Management Relations Act of 1947, as 



amended, I reconvened the Board of Inquiry. 
The Board held meetings with the parties 
and obtained the information required for 
its further report of the current position of 
the parties and the efforts which had been 
made for settlement, including a statement 
by each party of its position and a statement 
of the employer's last offer of settlement. 
This Final Report of the Board of Inquiry 
was submitted to me September ist. 

On September 25th, the Attorney General 
moved the District Court to discharge the 
injunction, which motion the Court that day 
granted effective September 21st. 

I am happy to report that settlements were 
reached by all parties to the dispute. 

John F. Kennedy 



22 Special Message to the Congress on Foreign Trade Policy. 
January 25, 1962 



To the Congress of the United States: 

Twenty-eight years ago our nation em- 
barked upon a new experiment in interna- 
tional relationships — the Reciprocal Trade 
Agreements Program. Faced with the 
chaos in world trade that had resulted from 
the Great Depression, disillusioned by the 
failure of the promises that high protective 
tariffs would generate recovery, and im- 
pelled by a desperate need to restore our 
economy. President Roosevelt asked for 
authority to negotiate reciprocal tariff re- 
ductions with other nations of the world in 
order to spur our exports and aid our 
economic recovery and growth. 

That landmark measure, guided through 
Congress by Cordell Hull, has been extended 
eleven times. It has served our country and 
the free world well over two decades. The 
application of this program brought growth 
and order to the free world trading system. 
Our total exports, averaging less than $2 
billion a year in the three years preceding 
enactment of the law, have now increased 
to over $20 billion. 

On June 30, 1962, the negotiating author- 
ity under the last extension of the Trade 



Agreements Act expires. It must be replaced 
by a wholly new instrument. A new Ameri- 
can trade initiative is needed to meet the 
challenges and opportunities of a rapidly 
changing world economy. 

In the brief period since this Act was 
last extended, five fundamentally new and 
sweeping developments have made obsolete 
our traditional trade policy: 

— The growth of the European Common 
Market — an economy which may soon 
nearly equal our own, protected by a single 
external tariff similar to our own — has 
progressed with such success and momentum 
that it has surpassed its original timetable, 
convinced those initially skeptical that there 
is now no turning back and laid the ground- 
work for a radical alteration of the eco- 
nomics of the Adantic Alliance. Almost 
90 percent of the free world's industrial 
production (if the United Kingdom and 
others successfully complete their negotia- 
tions for membership) may soon be concen- 
trated in two great markets — the United 
States of America and the expanded Euro- 
pean Economic Community. A trade policy 
adequate to negotiate item by item tariff 



68 



]ohn F. Kennedy, 1962 



Jan. 25 [22] 



reductions with a large number of small 
independent states will no longer be ade- 
quate to assure ready access for ourselves — 
and for our traditional trading partners in 
Canada, Japan, Latin America and else- 
where — to a market nearly as large as our 
own, whose negotiators can speak with one 
voice but whose internal differences make it 
impossible for them to negotiate item by 
item. 

— The growing pressures on our balance 
of payments position have, in the past few 
years, turned a new spotlight on the im- 
portance of increasing American exports to 
strengthen the international position of the 
dollar and prevent a steady drain of our 
gold reserves. To maintain our defense, 
assistance and other commitments abroad, 
while expanding the free flow of goods and 
capital, we must achieve a reasonable 
equilibrium in our international accounts by 
offsetting these dollar oudays with dollar 
sales. 

— The need to accelerate our own eco- 
nomic growth, following a lagging period 
of seven years characterized by three reces- 
sions, is more urgent than it has been in 
years — underlined by the millions of new 
job opportunities which will have to be 
found in this decade to provide employment 
for those already unemployed as well as an 
increasing flood of younger workers, farm 
workers seeking new opportunities, and city 
workers displaced by technological change. 

— The communist aid and trade o-Qensive 
has also become more apparent in recent 
years. Soviet bloc trade with 41 non-com- 
munist countries in the less-developed areas 
of the globe has more than tripled in recent 
years; and bloc trade missions are busy in 
nearly every continent attempting to pene- 
trate, encircle and divide the free world. 

— The need for new mar\ets for Japan 
and the developing nations has also been 
accentuated as never before — both by the 
prospective impact of the EEC's external 
tariff and by their own need to acquire new 
oudets for their raw materials and light 
manufacturers. 



To meet these new challenges and oppor- 
tunities, I am today transmitting to the 
Congress a new and modern instrument of 
trade negotiation — the Trade Expansion Act 
of 1962. As I said in my State of the Union 
Address, its enactment "could well affect 
the unity of the West, the course of the Cold 
War and the growth of our nation for a 
generation or more to come." 

I. THE BENEFITS OF INCREASED TRADE 

Specifically, enactment of this measure 
will benefit substantially every state of the 
union, every segment of the* American 
economy, and every basic objective of our 
domestic economy and foreign policy. 

Our e-fforts to expand our economy will be 
importantly affected by our ability to ex- 
pand our exports — and particularly upon the 
ability of our farmers and businessmen to 
sell to the Common Market. There is aris- 
ing across the Adantic a single economic 
community which may soon have a popula- 
tion half again as big as our own, working 
and competing together with no more bar- 
riers to commerce and investment than exist 
among our 50 states — in an economy which 
has been growing roughly twice as fast as 
ours — representing a purchasing power 
which will someday equal our own and a 
living standard growing faster than our 
own. As its consumer incomes grow, its 
consumer demands are also growing, par- 
ticularly for the type of goods that we 
produce best, which are only now beginning 
to be widely sold or known in the markets 
of Europe or in the homes of its middle- 
income families. 

Some 30 percent of our exports — more 
than $4 billion in industrial goods and 
materials and nearly $2 billion in agricul- 
tural products — already goes to the mem- 
bers and prospective members of the EEC. 
European manufacturers, however, have 
increased their share of this rapidly expand- 
ing market at a far greater rate than Ameri- 
can manufacturers. Unless our industry 
can maintain and increase its share of this 



69 



[22] Jan. 25 



Public Papers of the Presidents 



attractive market, there will be further 
temptation to locate additional American- 
financed plants in Europe in order to get 
behind the external tariff wall of the EEC. 
This would enable the American manu- 
facturer to contend for that vast consumer 
potential on more competitive terms with 
his European counterparts; but it will also 
mean a failure on our part to take advantage 
of this growing market to increase jobs and 
investment in this country. 

A more liberal trade policy will in general 
benefit our most efficient and expanding in- 
dustries — industries which have demon- 
strated their advantage over other world 
producers by exporting on the average 
twice as much of their products as we im- 
port — industries which have done this while 
paying the highest wages in our country. 
Increasing investment and employment in 
these growth industries will make for a 
more healthy, efficient and expanding 
economy and a still higher American 
standard of living. Indeed, freer movement 
of trade between America and the Common 
Market would bolster the economy of the 
entire free world, stimulating each nation 
to do most what it does best and helping to 
achieve the OECD target of a 50 percent 
combined Atlantic Community increase in 
Gross National Product by 1970. 

Our efforts to prevent inflation w'Al be 
reinforced by expanded trade. Once given 
a fair and equal opportunity to compete in 
overseas markets, and once subject to 
healthy competition from overseas manu- 
facturers for our own markets, American 
management and labor will have additional 
reason to maintain competitive costs and 
prices, modernize their plants and increase 
their productivity. The discipline of the 
world market place is an excellent measure 
of efficiency and a force to stability. To try 
to shield American industry from the dis- 
cipline of foreign competition would isolate 
our domestic price level from world prices, 
encourage domestic inflation, reduce our 
exports still further and invite less desirable 
Governmental solutions. 



Our efforts to correct our adverse balance 
of payments have in recent years roughly 
paralleled our ability to increase our export 
surplus. It is necessary if we are to maintain 
our security programs abroad — our own 
military forces overseas plus our contribu- 
tion to the security and growth of other free 
countries — to make substantial dollar out- 
lays abroad. These oudays are being held 
to the minimum necessary, and we are seek- 
ing increased sharing from our allies. But 
they will continue at substantial rates — and 
this requires us to enlarge the $5 billion ex- 
port surplus which we presently enjoy from 
our favorable balance of trade. If that sur- 
plus can be enlarged, as exports under our 
new program rise faster than imports, we 
can achieve the equilibrium in our balance 
of payments which is essential to our 
economic stability and flexibility. If, on the 
other hand, our surplus should fail to grow, 
if our exports should be denied ready access 
to the EEC and other markets — our overseas 
position would be endangered. Moreover, 
if we can lower the external tariff wall of the 
Common Market through negotiation our 
manufacturers will be under less pressure to 
locate their plants behind that wall in order 
to sell in the European market, thus reduc- 
ing the export of capital funds to Europe. 

Our efforts to promote the strength and 
unity of the West are thus directly related to 
the strength and unity of Atlantic trade 
policies. An expanded export program is 
necessary to give this Nation both the bal- 
ance of payments equilibrium and the eco- 
nomic growth we need to sustain our share 
of Western military security and economic 
advance. Equally important, a freer flow of 
trade across the Atlantic will enable the two 
giant markets on either side of the ocean to 
impart strength and vigor to each other, and 
to combine their resources and momentum 
to undertake the many enterprises which the 
security of free peoples demands. For the 
first time, as the world's greatest trading 
nation, we can welcome a single partner 
whose trade is even larger than our own — 
a partner no longer divided and dependent. 



70 



John F. Kennedy, 1962 



Jan. 25 [22] 



but strong enough to share with us the re- 
sponsibilities and initiatives of the free world. 
The communist bloc, largely self-con- 
tained and isolated, represents an economic 
power already by some standards larger 
than that of Western Europe and hoping 
someday to overtake the United States. But 
the combined output and purchasing power 
of the United States and Western Europe — 
nearly a trillion dollars a year — ^is more than 
twice as great as that of the entire Sino- 
Soviet world. Though we have only half 
the population, and far less than half the 
territory, we can pool our resources and 
resourcefulness in an open trade partnership 
strong enough to outstrip any challenge, and 
strong enough to undertake all the many 
enterprises around the world which the 
maintenance and progress of freedom re- 
quire. If we can take this step, Marxist pre- 
dictions of "capitalist" empires warring over 
markets and stifling competition would be 
shattered for all time — Communist hopes for 
a trade war between these two great eco- 
nomic giants would be frustrated — and 
Communist efforts to split the West would 
be doomed to failure. 

As members of the Atlantic Community 
we have concerted our military objectives 
through the North Atlantic Treaty Organi- 
zation. We are concerting our monetary 
and economic policies through the Organiza- 
tion for Economic Cooperation and Devel- 
opment. It is time now to write a new 
chapter in the evolution of the Atlantic 
Community. The success of our foreign 
policy depends in large measure upon the 
success of our foreign trade, and our main- 
tenance of Western political unity depends 
in equally large measure upon the degree 
of Western economic unity. An integrated 
Western Europe, joined in trading partner- 
ship with the United States, will further 
shift the world balance of power to the side 
of freedom. 

Our efforts to prove the superiority of 
free choice will thus be advanced immeas- 
urably. We will prove to the world that 
we believe in peacefully "tearing down 



walls" instead of arbitrarily building them. 
We will be opening new vistas of choice 
and opportunity to the producers and con- 
sumers of the free world. In answer to 
those who say to the world's poorer coun- 
tries that economic progress and freedom 
are no longer compatible, we — who have 
long boasted about the virtues of the mar- 
ket place and of free competitive enterprise, 
about our ability to compete and sell in any 
market, and about our willingness to keep 
abreast of the times — will have our greatest 
opportunity since the Marshall Plan to dem- 
onstrate the vitality of free choice. 

Communist bloc nations have negotiated 
more than 200 trade agreements in recent 
years. Inevitably the recipient nation finds 
its economy increasingly dependent upon 
Soviet goods, services and technicians. But 
many of these nations have also observed 
that the economics of free choice provide far 
greater benefits than the economics of co- 
ercion — and the wider we can make the area 
of economic freedom, the easier we make 
it for all free peoples to receive the benefits 
of our innovations and put them into 
practice. 

Our efforts to aid the developing nations 
of the world and other friends, however, de- 
pend upon more than a demonstration of 
freedom's vitality and benefits. If their 
economies are to expand, if their new indus- 
tries are to be successful, if they are to 
acquire the foreign exchange funds they 
will need to replace our aid efforts, these 
nations must find new oudets for their raw 
materials and new manufactures. We must 
make certain that any arrangements which 
we make with the European Economic Com- 
munity are worked out in such a fashion as 
to insure nondiscriminatory application to 
all third countries. Even more important, 
however, the United States and Europe to- 
gether have a joint responsibility to all of 
the less developed countries of the world — 
and in this sense we must work together to 
insure that their legitimate aspirations and 
requirements are fulfilled. The "open 
partnership" which this Bill proposes will 



71 



[22] Jan. 25 



Public Papers of the Presidents 



enable all free nations to share together 
the rewards of a wider economic choice 
for all. 

Our e-fforts to maintain the leadership of 
the free tvorld thus rest, in the final analysis, 
on our success in this undertaking. Eco- 
nomic isolation and political leadership are 
wholly incompatible. In the next few years, 
the nations of Western Europe will be fixing 
basic economic and trading patterns vitally 
affecting the future of our economy and the 
hopes of our less-developed friends. Basic 
political and military decisions of vital in- 
terest to our security will be made. Unless 
we have this authority to negotiate and have 
it this year— *-if we are separated from the 
Common Market by high tariff barriers on 
either side of the Atlantic — then we cannot 
hope to play an effective part in those basic 
decisions. 

If we are to retain our leadership, the 
initiative is up to us. The revolutionary 
changes which are occurring will not wait 
for us to make up our minds. The United 
States has encouraged sweeping changes in 
Free World economic patterns in order to 
strengthen the forces of freedom. But we 
cannot ourselves stand still. If we are to 
lead, we must act. We must adapt our own 
economy to the imperatives of a changing 
world, and once more assert our leadership. 

The American businessman, once the au- 
thority granted by this bill is exercised, will 
have a unique opportunity to compete on a 
more equal basis in a rich and rapidly ex- 
panding market abroad which possesses 
potentially a purchasing power as large and 
as varied as our own. He knows that, once 
artificial restraints are removed, a vast array 
of American goods, produced by American 
know-how with American efficiency, can 
compete with any goods in any spot in the 
world. And almost all members of the busi- 
ness community, in every state, now partici- 
pate or could participate in the production, 
processing, transporting, or distribution of 
either exports or imports. 

Already we sell to Western Europe alone 
more machinery, transportation equipment, 



chemicals and coal than our total imports of 
these commodities from all regions of the 
world combined. Western Europe is our 
best customer today — and should be an even 
better one tomorrow. But as the new ex- 
ternal tariff surrounding the Common Mar- 
ket replaces the internal tariff structure, a 
German producer — who once competed in 
the markets of France on the same terms 
with our own producers — ^will achieve free 
access to French markets while our own pro- 
ducers face a tariff. In short, in the absence 
of authority to bargain down that external 
tariff, as the economy of the Common Mar- 
ket expands, our exports will not expand 
with it. They may even decline. 

The American farmer has a tremendous 
stake in expanded trade. One out of every 
seven farm workers produces for export. 
The average farmer depends on foreign 
markets to sell the crops grown on one out 
of every six acres he plants. Sixty percent 
of our rice, 49 percent of our cotton, 45 per- 
cent of our wheat and 42 percent of our soy- 
bean production are exported. Agriculture 
is one of our best sources of foreign exchange. 

Our farmers are particularly dependent 
upon the markets of Western Europe. Our 
agricultural trade with that area is four to 
one in our favor. The agreements recendy 
reached at Brussels both exhausted our exist- 
ing authority to obtain further European 
concessions, and laid the groundwork for 
future negotiations on American farm ex- 
ports to be conducted once new authority is 
granted. But new and flexible authority is 
required if we are to keep the door of the 
Common Market open to American agri- 
culture, and open it wider still. If the output 
of our astounding productivity is not to pile 
up increasingly in our warehouses, our nego- 
tiators will need both the special EEC au- 
thority and the general 50 percent authority 
requested in the bill described later in this 
message. 

The American wor\er will benefit from 
the expansion of our exports. One out of 
every three workers engaged in manufac- 
turing is employed in establishments that 



72 



John F. Kennedy, 1962 



Jan. 25 [22] 



export. Several hundred times as many 
workers owe their jobs direcdy or indirectly 
to exports as are in the small group — esti- 
mated to be less than one half of one percent 
of all workers — who might be adversely 
affected by a sharp increase in imports. As 
the number of job seekers in our labor force 
expands in the years ahead, increasing our 
job opportunities will require expanding our 
markets and economy, and making certain 
that new United States plants built to serve 
Common Market consumers are built here, 
to employ American workers, and not there. 

The American consumer benefits most of 
all from an increase in foreign trade. Im- 
ports give him a wider choice of products at 
competitive prices. They introduce new 
ideas and new tastes, which often lead to 
new demands for American production. 

Increased imports stimulate our own ef- 
forts to increase efficiency, and supplement 
anti-trust and other efforts to assure com- 
petition. Many industries of importance to 
the American consumer and economy are 
dependent upon imports for raw materials 
and other supplies. Thus American-made 
goods can also be made much less expensively 
for the American consumers if we lower the 
tariff on the materials that are necessary to 
their production. 

American imports, in short, have gen- 
erally strengthened rather than weakened 
our economy. Their competitive benefits 
have already been mentioned. But about 
60 percent of the goods we import do not 
compete with the goods we produce — either 
because they are not produced in this coun- 
try, or are not produced in any significant 
quantity. They provide us with products 
we need but cannot efficiently make or grow 
(such as bananas or coffee), supplement our 
own steadily depleting natural resources 
with items not available here in quantity 
(such as manganese or chrome ore, 90 per- 
cent or more of which must be imported if 
our steel mills are to operate), and contrib- 
ute to our industrial efficiency, our economic 
growth and our high level of consumption. 
Those imports that do compete are equal 



to only one or one and one-half percent of 
our total national production; and even these 
imports create jobs direcdy for those engaged 
in their processing, distribution, or trans- 
portation, and indirecdy for those employed 
in both export industries and in those in- 
dustries dependent upon reasonably priced 
imported supplies for their own ability to 
compete. 

Moreover, we must reduce our own tariffs 
if we hope to reduce tariffs abroad and 
thereby increase our exports and export sur- 
plus. There are many more American jobs 
dependent upon exports than could possibly 
be adversely affected by increased imports. 
And those export industries are our strongest, 
most efficient, highest paying growth 
industries. 

It is obvious, therefore, that the warnings 
against increased imports based upon the 
lower level of wages paid in other countries 
are not telling the whole story. For this 
fear is refuted by the fact that American 
industry in general — and America's highest 
paid industries in particular — export more 
goods to other markets than any other na- 
tion; sell far more abroad to other countries 
than they sell to us; and command the vast 
preponderance of our own market here in 
the United States. There are three reasons 
for this: 

(a) The skill and efficiency of American 
workers, with the help of our machinery 
and technology, can produce more units per 
man hour than any other workers in the 
world — thus making the competitive cost 
of our labor for many products far less than 
it is in countries with lower wage rates. For 
example, while a United States coal miner is 
paid eight times as much per hour as the 
Japanese miner, he produces fourteen times 
as much coal — our real cost per ton of coal 
is thus far smaller — and we sell the Japanese 
tens of millions of dollars worth of coal each 
year. 

(b) Our best industries also possess other 
advantages — ^the adequacy of low cost raw 
materials or electrical power, for example. 
Neither wages nor total labor costs is an 



715-405 0—64- 



73 



[22] Jan. 25 



Public Papers of the Presidents 



adequate standard of comparison if used 
alone. 

(c) American products can frequently 
compete successfully even where foreign 
prices are somewhat lower — by virtue of 
their superior quality, style, packaging, 
servicing or assurance of delivery. 

Given this strength, accompanied by in- 
creasing productivity and wages in the rest 
of the world, there is less need to be con- 
cerned over the level of wages in the low 
wage countries. These levels, moreover, 
are already on the rise, and, we would hope, 
will continue to narrow the current wage 
gap, encouraged by appropriate consulta- 
tions on an international basis. 

This philosophy of the free market — ^the 
wider economic choice for men and na- 
tions — ^is as old as freedom itself. It is not 
a partisan philosophy. For many years our 
trade legislation has enjoyed bi-partisan 
backing from those members of both parties 
who recognized how essential trade is to our 
basic security abroad and our economic 
health at home. This is even more true 
today. The Trade Expansion Act of 1962 
is designed as the expression of a nation, not 
of any single faction, not of any single fac- 
tion or section. It is in that spirit that I 
recommend it to the Congress for prompt 
and favorable action. 



II. PROVISIONS OF THE BILL 

New Negotiating Authority, To achieve 
all of the goals and gains set forth above — 
to empower our negotiators with sufficient 
authority to induce the EEC to grant wider 
access to our goods and crops and fair treat- 
ment to those of Latin America, Japan and 
other countries — and to be ready to talk trade 
with the Common Market in practical 
terms — ^it is essential that our bargaining au- 
thority be increased in both flexibility and 
extent. I am therefore requesting two basic 
kinds of authority to be exercised over the 
next five years: 

First, a general authority to reduce exist- 
ing tari£Fs by 50 percent in reciprocal nego- 



tiations. It would be our intention to em- 
ploy a variety of techniques in exercising this 
authority, including negotiations on broad 
categories or sub-categories of products. 

Secondly, a special authority, to be used 
in negotiating with the EEC, to reduce or 
eliminate all tariffs on those groups of prod- 
ucts where the United States and the EEC 
together account for 80 percent or more of 
world trade in a representative period. The 
fact that these groups of products fall within 
this special or "dominant supplier" authority 
is proof that they can be produced here or in 
Europe more eflSciendy than anywhere else 
in the world. They include most of the 
products which the members of the Com- 
mon Market are especially interested in trad- 
ing with us, and most of the products for 
which we want freer access to the Common 
Market; and to a considerable extent they 
are items in which our own ability to com- 
pete is demonstrated by the fact that our ex- 
ports of these items are substantially greater 
than our imports. They account for nearly 
$2 billion of our total industrial exports to 
present and prospective Common Market 
members in i960, and for about $1.4 billion 
of our imports from these countries. In 
short, this special authority will enable us 
to negotiate for a dramatic agreement with 
the Common Market that will pool our eco- 
nomic strength for the advancement of 
freedom. 

To be effective in achieving a break- 
through agreement with the EEC so that our 
farmers, manufacturers and other free world 
trading partners can participate, we will need 
to use both the dominant supplier authority 
and the general authority in combination. 
Reductions would be put into effect gradu- 
ally in stages over five years or more. But 
the traditional technique of trading one brick 
at a time off our respective tariff walls will 
not suflSce to assure American farm and 
factory exports the kind of access to the 
European market which they must have if 
trade between the two Adantic markets is to 
expand. We must talk instead in terms of 
trading whole layers at a time in exchange 



74 



]ohn F. Kennedy, 7962 



Jan. 25 [22] 



for other layers, as the Europeans have been 
doing in reducing their internal tariffs, per- 
mitting the forces of competition to set new 
trade patterns. Trading in such an enlarged 
basis is not possible, the EEC has found, if 
traditional item by item economic histories 
are to dominate. But let me emphasize that 
we mean to see to it that all reductions and 
concessions are reciprocal — ^and that the 
access we gain is not limited by the use of 
quotas or other restrictive devices. 

Safeguarding interests of other trading 
partners. In our negotiations with the Com- 
mon Market, we will preserve our traditional 
most favored-nation principle under which 
any tariff concessions negotiated will be 
generalized to our other trading partners. 
Obviously, in special authority agreements 
where the United States and the EEC are 
the dominant suppliers, the participation of 
other nations often would not be significant. 
On other items, where justified, compensat- 
ing concessions from other interested coun- 
tries should be obtained as part of the nego- 
tiations. But in essence we must strive for 
a non-discriminatory trade partnership with 
the EEC. If it succeeds only in splintering 
the free world, or increasing the disparity 
between rich and poor nations, it will have 
failed to achieve one of its major purposes. 
The negotiating authority under this bill will 
thus be used to strengthen the ties of both 
"Common Markets" with, and expand our 
own trade in, the Latin American republics, 
Canada, Japan and other non-European 
nations-^as well as helping them maximize 
their opportunities to trade with the Com- 
mon Market. 

The bill also requests special authority to 
reduce or eliminate all duties and other re- 
strictions on the importation of tropical agri- 
cultural and forestry products supplied by 
friendly less-developed countries and not 
produced here in any significant quantity, 
if our action is taken in concert with similar 
action by the Common Market. These 
tropical products are the staple exports of 
many less-developed countries. Their ef- 
forts for economic development and diversi- 



fication must be advanced out of earnings 
from these products. By assuring them as 
large a market as possible, we are bringing 
closer the day when they will be able to 
finance their own development needs on a 
self-sustaining basis. 

Safeguards to American Industry. If the 
authority requested in this act is used, im- 
ports as well as exports will increase; and 
this increase will, in the overwhelming 
number of cases, be beneficial for the reasons 
oudined above. Nevertheless ample safe- 
guards against injury to American industry 
and agriculture will be retained. Escape 
clause relief will continue to be available 
with more up-to-date definitions. Tempo- 
rary tariff relief will be granted where essen- 
tial. The power to impose duties or sus- 
pend concessions to protect the national 
security will be retained. Articles will be 
reserved from negotiations whenever such 
action is deemed to be in the best interest of 
the nation and the economy. And the four 
basic stages of the traditional peril point 
procedures and safeguards will be retained 
and improved: 

— the President will refer to the Tariff 
Commission the list of proposed items for 
negotiations; 

— ^the Tariff Commission will conduct 
hearings to determine the effect of conces- 
sions on these products; 

— ^the Commission will make a report to 
the President, specifically based, as such 
reports are based now, upon its findings of 
how new imports might lead to the idling 
of productive facilities, the inability of 
domestic producers to operate at a profit and 
the unemployment of workers as the result 
of anticipated reductions in duties; and 

— ^the President will report to the Con- 
gress on his action after completion of the 
negotiations. The present arrangements 
will be substantially improved, however, 
since both the Tariff Commission recom- 
mendation and the President's report would 
be broader than a bare determination of 
specific peril points; and this should enable 
us to make much more informed use of 



75 



[22] Jan. 25 



Public Papers of the Presidents 



these recommendations than has been true 
in the past. 

Trade Adjustment Assistance, I am also 
recommending as an essential part of the 
new trade program that companies, farmers 
and workers who suffer damage from in- 
creased foreign import competition be as- 
sisted in their efforts to adjust to that com- 
petition. When considerations of national 
policy make it desirable to avoid higher 
tariffs, those injured by that competition 
should not be required to bear the full brunt 
of the impact. Rather, the burden of eco- 
nomic adjustment should be borne in part 
by the Federal Government. 

Under existing law, the only alternatives 
available to the President are the imposi- 
tion or refusal of tariff relief. These alterna- 
tives should continue to be available. 

The legislation I am proposing, however, 
provides an additional alternative called 
Trade Adjustment Assistance. This alterna- 
tive will permit the Executive Branch to 
make extensive use of its facilities, programs 
and resources to provide special assistance 
to farmers, firms and their employees in 
making the economic readjustments neces- 
sitated by the imports resulting from tariff 
concessions. 

Any worker or group of workers unem- 
ployed or under-employed as a result of in- 
creased imports would, under this bill, be 
eligible for the following forms of assistance: 

1. Readjustment allowances providing as 
much as 65 percent of the individual's aver- 
age weekly wage for up to 52 weeks for all 
workers, and for as many as 13 additional 
weeks for workers over 60, with unemploy- 
ment insurance benefits deducted from such 
allowances to the extent available; 

2. Vocational education and training as- 
sistance to develop higher and different 
skills; 

3. Financial assistance for those who can- 
not find work in their present community 
to relocate to a different place in the 
United States where suitable employment is 
available. 



For a businessman or farmer adversely 
affected by imports, there should be 
available: 

1. Technical information, advice and con- 
sultation to help plan and implement an 
attack on the problem; 

2. Tax benefits to encourage moderniza- 
tion and diversification; 

3. Loan guarantees and loans otherwise 
not commercially available to aid mod- 
ernization and diversification. 

Just as the Federal Government has as- 
sisted in personal readjustments made nec- 
essary by military service, just as the Fed- 
eral Government met its obligation to assist 
industry in adjusting to war production and 
again to return to peacetime production, so 
there is an obligation to render assistance to 
those who suffer as a result of national trade 
policy. Such a program will supplement 
and work in coordination with, not dupli- 
cate, what we are already doing or proposing 
to do for depressed areas, for small business, 
for investment incentives, and for the re- 
training and compensation of our unem- 
ployed workers. 

This cannot be and will not be a subsidy 
program of government paternalism. It is 
instead a program to afford time for Amer- 
ican initiative, American adaptability and 
American resiliency to assert themselves. 
It is consistent with that part of the pro- 
posed law which would stage tariff reduc- 
tions over a five year period. Accordingly, 
trade adjustment assistance, like the other 
provisions of the Trade Expansion Act of 
1962, is designed to strengthen the efficiency 
of our economy, not to protect inefficiencies. 

Authority to grant temporary tariff relief 
will remain available to assist those indus- 
tries injured by a sudden influx of goods 
under revised tariffs. But the accent is 
on "adjustment" more than "assistance." 
Through trade adjustment prompt and ef- 
fective help can be given to those suffering 
genuine hardship in adjusting to import 
competition, moving men and resources out 
of uneconomic production into efficient pro- 



76 



John F. Kennedy, 7962 



Jan. 30 [23] 



duction and competitive positions, and in the 
process preserving the employment relation- 
ships betw^een firms and workers wherever 
possible. Unlike tariff relief, this assistance 
can be tailored to their individual needs 
without disrupting other policies. Experi- 
ence with a similar kind of program in the 
Common Market, and in the face of more 
extensive tariff reductions than we propose 
here, testifies to the effective but relatively 
inexpensive nature of this approach. For 
most affected firms will find that the ad- 
justment involved is no more than the ad- 
justment they face every year or few years 
as the result of changes in the economy, 
consumer taste or domestic competition. 

The purpose of this message has been 
to describe the challenge we face and the 
tools we need. The decision rests with the 
Congress. That decision will either mark 
the beginning of a new chapter in the alli- 
ance of free nations — or a threat to the 
growth of Western unity. The two great 
Atlantic markets will either grow together 
or they will grow apart. The meaning and 
range of free economic choice will either 
be widened for the benefit of free men 
everywhere — or confused and constricted by 
new barriers and delays. 



Last year, in enacting a long-term foreign 
aid program, the Congress made possible a 
fundamental change in our relations with 
the developing nations. This bill will make 
possible a fundamental, far-reaching and 
unique change in our relations with the other 
industrialized nations — particularly with the 
other members of the Atlantic Community. 
As NATO was unprecedented in military 
history, this measure is unprecedented in 
economic history. But its passage will be 
long-remembered and its benefits widely 
distributed among those who work for 
freedom. 

At rare moments in the life of this na- 
tion an opportunity comes along to fashion 
out of the confusion of current events a 
clear and bold action to show the world what 
it is we stand for. Such an opportunity is 
before us now. This bill, by enabling us to 
strike a bargain with the Common Market, 
will "strike a blow" for freedom. 

John F. Kennedy 

note: The Trade Expansion Act of 1962 was ap- 
proved by the President on October 11, 1962. For 
his statement upon signing the bill, see Item 449. 



23 Special Message to the Congress Transmitting Reorganization 
Plan I of 1962. January 30, 1962 



To the Congress of the United States: 

I transmit herewith Reorganization Plan 
No. I of 1962, prepared in accordance with 
the provisions of the Reorganization Act of 
1949, as amended. 

In my special message on housing of 
March 9, 1961, and again in my message on 
the State of the Union earlier this year, I 
recommended the establishment in the ex- 
ecutive branch of a new Department of 
Urban Affairs and Housing, of Cabinet 
rank. This plan would fulfill that recom- 
mendation. 

The times we live in urgently call for this 



action. In a few short decades we have 
passed from a rural to an urban way of life; 
in a few short decades more, we shall be a 
nation of vasdy expanded population, living 
in expanded urban areas in housing that does 
not now exist, served by community facilities 
that do not now exist, moving about by 
means of systems of urban transportation 
that do not now exist. The challenge is 
great, and the time is short. I propose to act 
now to strengthen and improve the ma- 
chinery through which, in large part, the 
Federal Government must act to carry out 
its proper role of encouragement and assist- 



77 



[23] Jan. 30 



Public Papers of the Presidents 



ance to States and local governments, to 
voluntary efforts and to private enterprise, 
in the solution of these problems. 

The present and future problems of our 
cities are as complex as they are manifold. 
There must be expansion: but orderly and 
planned expansion, not explosion and sprawl. 
Basic public facilities must be extended ever 
further into the areas surrounding urban 
centers: but they must be planned and co- 
ordinated so as to favor rather than hamper 
the sound growth of our communities. The 
scourge of blight must be overcome, and the 
central core areas of our cities, with all their 
great richness of economic and cultural 
wealth, must be restored to lasting vitality. 
New values must be created to provide a 
more eflScient local economy and provide 
revenues to support essential local services. 
Sound old housing must be conserved and 
improved, and new housing created, to serve 
better all income groups in our population 
and to move ever closer to the goal of a 
decent home in a suitable living environ- 
ment for every American family. We will 
neglect our cities at our peril, for in neglect- 
ing them we neglect the Nation. 

The reorganization plan I am transmitting 
would establish a new executive department 
to be known as the Department of Urban 
Affairs and Housing. To the department 
would be transferred the existing programs 
and responsibilities of the Housing and 
Home Finance Agency. These programs 
include an extraordinary range of diverse yet 
closely interrelated activities: insurance of 
mortgages to finance the construction of 
homes and the ready interchange of existing 
homes, as well as their modernization and 
improvement; financial aids to local com- 
munities in comprehensive local planning, 
in slum clearance and urban renewal, and 
in the conservation and rehabilitation of 
neighborhoods and whole urban areas; ad- 
vances and loans to assist in the planning 
and construction of needed public facilities; 
loans to assist in meeting the needs of our 
hard-pressed colleges and universities for 
student and faculty housing; financial aids in 

78 



the search for solutions to the baffling prob- 
lems of urban mass transportation; a variety 
of tools to stabilize and encourage liquidity 
in the private mortgage market; financial 
assistance in providing decent housing for 
low-income families; and others still. 

Widely different as these Federal pro- 
grams are in subject matter and in tech- 
niques, they all affect the lives and welfare 
of families in our cities and their surround- 
ing areas, and they all impinge in one de- 
gree or another on each other. None can or 
should stand by itself. The basic purpose 
of this plan is to establish a department 
which will bring a maximum degree of co- 
ordination and effectiveness to the planning 
and execution of all of them. 

Our cities and the people who live in and 
near them need and deserve an adequate 
voice in the highest councils of government. 
The executive branch and the Congress need 
an adequate instrument to assist them in the 
formulation and execution of policy con- 
cerning urban affairs and housing. States 
and local governing bodies urgendy need an 
agency at the departmental level to assist 
them in formulating and carrying out their 
local programs for dealing with these prob- 
lems. All these needs can best be met 
through the establishment of the department 
provided for in this reorganization plan. 

It should not be assumed that these are 
matters of concern only to our larger cities. 
Hundreds of smaller cities and towns are 
located on or near the fringes of rapidly 
growing urban areas. The problems of the 
cities affect them today, and will be theirs 
tomorrow. Hundreds of other smaller 
towns and cities not now affected will be so 
situated a few short years hence. Thus, the 
smaller towns and cities have a stake in this 
proposal as vital as, and only a little less im- 
mediate than, that of our large urban cen- 
ters. This plan is addressed to their needs 
as well as to those of the major cities. Like- 
wise, it should be emphasized that the de- 
partment will have important activities of 
service to the States. The establishment of 
this department does not connote any by- 



John F. Kennedy, 7962 



Jan. 30 [23] 



passing or reduction o£ the constitutional 
powers and responsibilities of the States 
under our Federal system of government. 
Rather, the States must assume additional 
leadership in the future in dealing with 
problems of urban areas, and the department 
will maintain close working and consultative 
relationships with them. An example of this 
relationship can already be found in the 
urban planning assistance program of the 
Housing and Home Finance Agency which 
provides matching funds for use by States to 
aid municipalities and State, metropolitan 
and regional planning agencies facing rapid 
urbanization. Grants may be used by the 
States themselves to prepare state-wide com- 
prehensive plans for urban development. 
Just as the programs of the Department of 
Agriculture have strengthened the role of 
the States in measuring and helping solve 
the problems of their farmers, so the De- 
partment of Urban Affairs and Housing will 
provide additional opportunities for the 
States to play a strong role in the develop- 
ment of their urban communities. 

As the Senate Committee noted in its re- 
port on S. 1633 (S. Rep. No. 879, 87th Cong., 
I St Session), "A Department of Urban 
Affairs and Housing is needed to provide 
Federal leadership to solve the problems 
emerging from the transformation of the 
American scene from a predominantly rural 
society to a vast urban complex. More than 
two-thirds of the American population now 
lives in metropolitan centers. The figure 
is multiplying. It is compounded of ex- 
plosive population growth resulting from an 
increased birth rate, a declining death rate, 
and rapid migration of people from rural 
areas to cities, towns, and villages." The 
importance of our nation's metropolitan 
areas entiding them to representation at the 
Cabinet table is further emphasized by the 
'great amount of tax revenues they contribute 
to the Federal government. For example, 
in 1959, taxpayers in the 10 largest metro- 
politan areas paid over $13 billion in taxes 
or 35% of the total amount of individual 
income tax. 



The need for such a department has been 
increasingly recognized in recent years. A 
proposal for a cabinet department sub- 
stantially similar in nature was advanced at 
about the same time that the first consoli- 
dated Federal housing agency was estab- 
lished, twenty years ago. Since then, year 
by year, both the executive branch and the 
Congress have taken successive steps to 
create a more coordinated agency with a 
fuller range of tools to attack these prob- 
lems. No fewer than five reorganization 
plans submitted by my predecessors have 
contributed to this process. On the legisla- 
tive side, the Congress has enacted major 
legislation in the field of urban affairs and 
housing in every year but one since 1946. 
The time is here to take the next needed 
step. 

First, Reorganization Plan No. i of 1962 
would establish a Department of Urban 
Affairs and Housing, to be headed by a 
Secretary who would be assisted by an Under 
Secretary, three Assistant Secretaries, and a 
General Counsel. All of these officers 
would be appointed by the President by and 
with the advice and consent of the Senate. 
There would also be in the department, as 
in many others, an Administrative Assistant 
Secretary appointed from the classified civil 
service by the Secretary, with the approval 
of the President. 

Second, the plan transfers to the Secretary 
of Urban Affairs and Housing the functions 
of the Housing and Home Finance Agency 
and its Administrator, including the ad- 
ministration of the programs of the Urban 
Renewal Administration and the Com- 
munity Facilities Administration and the 
authorities now vested by law in the Public 
Housing Administration and its officers. 

Because of its magnitude in our economy 
and the immediacy of its impact on our peo- 
ple, housing has been and will continue to 
be the heart of this complex of related pro- 
grams. In recognition of this fact, the plan 
provides for the transfer of the Federal 
Housing Administration as an entity to the 
new department. Provision is also made 



79 



[23] Jan. 30 



Public Papers of the Presidents 



for the continuance of the existing ofSce of 
Federal Housing Commissioner, appointed 
by the President with the advice and con- 
sent of the Senate. The Commissioner 
would continue to head the Federal Hous- 
ing Administration under the supervision 
and direction of the Secretary as head of the 
department. 

Finally, in view of its special legal status 
as a mixed-ownership corporation, the Fed- 
eral National Mortgage Association would 
be transferred to the department without 
change. The Secretary would serve as 
Chairman of the Board of the Association, as 
the Housing and Home Finance Adminis- 
trator now does. No change in the organi- 
zation or functions of the Association within 
the department affecting its secondary mar- 
ket operations could be made unless the 
Secretary finds that such change would not 
adversely affect the rights and interests of 
owners of outstanding common stock of the 
Association. 

In accordance with the spirit and intent 
of the Reorganization Act of 1949, as 
amended, this plan promotes the better 
execution of the laws, the more effective 
management of the executive branch of the 
government, and the expeditious adminis- 
tration of the public business. It aims to 
promote economy and increase efficiency to 
the fullest extent practicable. Its signifi- 
cance in the pursuit of these purposes must 
be judged in the light of the magnitude and 
significance of the programs affected. 

The various programs with which the new 
department would be charged involve Fed- 
eral investments of billions of dollars, and 
contingent liabilities of billions more. The 
quality of administration of these programs 
has profound effects on land values and tax 
revenues in local communities throughout 
the country. The operations of these pro- 
grams figure importantly in the vitality of 
the general economy. The policies that 
govern them play a major role in determina- 
tions of national fiscal and monetary policy. 
Their management in the most effective and 
coordinated way possible, therefore, will 



yield economies in the broad sense far out- 
weighing the amount involved in the ad- 
ministrative cost of their operations. And 
even in the latter area, I am convinced that 
economy and efficiency will be importantly 
enhanced by the improved coordination 
which this reorganization plan will make 
possible. 

For all the reasons herein set forth, I have 
concluded that the creation of a Department 
of Urban Affairs and Housing is urgently 
needed to permit me to discharge most effec- 
tively the responsibilities in this area placed 
upon the President by the Constitution and 
by the statutes respecting these matters en- 
acted by the Congress. 

After investigation, I have found and 
hereby declare that each reorganization in- 
cluded in Reorganization Plan No. i of 1962 
is necessary to accomplish one or more of the 
purposes set forth in section 2(a) of the 
Reorganization Act of 1949, as amended. I 
have also found and hereby declare that by 
reason of these reorganizations it is necessary 
to include in the reorganization plan provi- 
sions for the appointment and compensation 
of the new officers specified in section 2 of 
the reorganization plan. The rates of com- 
pensation fixed for these officers are, re- 
spectively, those which I have found to 
prevail in respect of comparable officers in 
the executive branch of the government. 

Although the taking effect of the reorga- 
nizations provided for in the reorganization 
plan will not in itself result in immediate 
savings, the improvement achieved in ad- 
ministration will in the future allow the 
performance of necessary services at greater 
savings than present operations would per- 
mit. An itemization of these savings in ad- 
vance of actual experience is not practicable. 

John F. Kennedy 

note: Released with the President's message was a 
statement containing a chronological summary of 
developments relating to the President's proposal 
for the creation of a Department of Urban Affairs 
and Housing. 

Reorganization Plan i of 1962 is published in 
House Document 320 (87th Cong., 2d sess.). 



80 



]ohn F. Kennedy, 7962 



Jan. 30 [24] 



24 Special Message to the Congress Transmitting a Bill for the 
Purchase of United Nations Bonds. January 30, 1962 



To the Congress of the United States: 

I am transmitting herewith for the con- 
sideration of the Congress a suggested bill 
"to promote the foreign policy of the United 
States by authorizing the purchase of United 
Nations bonds and the appropriation of 
funds therefor." This bill would authorize 
and appropriate up to $100 million for the 
purchase of United Nations bonds. 

The United Nations is faced with a fi- 
nancial crisis due largely to extraordinary 
expenditures which it incurred in fulfilling 
the pledges in its Charter to secure peace, 
progress and human rights. I regard it as 
vital to the interests of our country and to 
the maintenance of peace that the capacity of 
the United Nations to act for peace not be 
inhibited by a lack of financial resources. 

Some members have failed to pay special 
assessments levied for peace-keeping opera- 
tions in the Middle East and in the Congo, 
claiming that these assessments are not bind- 
ing upon them. The shortage of operating 
funds thus created has reduced the working 
capital fund of the United Nations to zero 
and compelled it to hold back on the pay- 
ment of bills and borrow from United 
Nations agencies. 

Prudence and good management require 
all institutions — public or private, national 
or international — to keep their affairs in 
good financial order. The Secretary- 
General of the United Nations therefore 
urged the adoption of, and the members ap- 
proved by a large majority, a three point 
plan to relieve the cash deficit and to avoid 
the need for makeshift financing of emer- 
gency operations designed to keep or restore 
the peace: 

Point One is to cover anticipated expenses 
for the United Nations Operation in the 
Congo and for the United Nations Emer- 
gency Force in the Middle East through the 
end of the present Fiscal Year. The Six- 
teenth General Assembly approved a new 



appropriation for these purposes, assessed 
against all members. 

Point Two is to resolve all doubt as to 
whether delinquent members must pay 
special assessments for the Congo (ONUC) 
and Middle East (UNEF) operations, or face 
the loss of their voting rights. To this end, 
the United Nations General Assembly re- 
quested from the International Court of 
Justice an advisory opinion as to whether 
these special assessments, like regular assess- 
ments, are "expenses of the Organization" 
legally binding on all members by the terms 
of the United Nations Charter. 

It is the opinion of the United States that 
special assessments voted by a two-thirds 
majority of the General Assembly are oblig- 
atory. We anticipate a decision by early 
summer of this year. If our view, which is 
shared by most of the members of the United 
Nations, is confirmed by the Court, then all 
members will have to pay their dues or lose 
their right to vote in the General Assembly. 
It is only fair that members that participate 
in the privileges of membership should par- 
ticipate also in its obligations. 

Even if the Court's opinion goes as we 
believe it should, the United Nations would 
still be faced with a serious cash problem, 
aggravated by any further delays in collect- 
ing back dues from those who have not been 
willing to pay the special assessments. Con- 
sequendy. 

Point Three of the United Nations finan- 
cial plan is to acquire a special fund to relieve 
the present cash deficit by paying ofJ current 
bills and debts, and by setting aside a reason- 
able reserve to help finance United Nations 
peace-keeping operations in future emergen- 
cies. 

For this purpose the General Assembly has 
authorized the Secretary-General to issue 
$200 million worth of United Nations bonds 
repayable at 2 percent interest over a twenty- 
five year period with annual repayments 



81 



[24] Jan. 30 



Public Papers of the Presidents 



charged against the budget of the United 
Nations. All members are assessed a share 
of that budget. 

If this program is successful, the United 
Nations will be in a vastly improved finan- 
cial position. It is my judgment that this 
plan is sound both for the United Nations 
and for its members. These bonds will be 
repaid with interest at the rate of approxi- 
mately $10 million a year, as part of the 
regular assessment. Every nation — includ- 
ing the Soviet Union — ^will thus be required 
to pay its fair share or lose its vote. And the 
United States will be obligated, in the long 
run, to meet only 32 percent of these special 
costs instead of the nearly 50 percent we are 
presently contributing to the special opera- 
tions of the United Nations. 

I ask that the Congress act now to back 
the United Nations by authorizing the pur- 
chase of these bonds. Failure to act would 
serve the interests of the Soviet Union, which 
has been particularly opposed to the opera- 
tion in the Congo and which voted against 
this plan as part of the consistent Communist 
effort to undermine the United Nations and 
undercut its new Secretary-General. For 
without the bond issue, either the United 
Nations' executive arm will wither or the 
United States will be compelled to pay a 
larger share of the costs of operation than 
is reasonable for any one member of an 
international organization. 

The central purpose of the United Nations 
is to keep the peace wherever possible and to 
restore the peace whenever it is broken. 



The United Nations has received the sup- 
port of both political parties since its incep- 
tion. 

By emergency action the United Nations 
turned back aggression in Korea. 

By emergency action the United Nations 
brought a halt to war in the Middle East over 
five years ago, and ever since has safeguarded 
the armistice lines. 

By emergency action the United Nations 
has prevented large-scale civil war and 
avoided great-power intervention in the 
Congo. 

It is impossible to say where or when the 
United Nations may be called on again for 
emergency action to preserve or restore the 
peace. 

We shall spend this year nearly one-half 
of the Federal Budget for national defense. 
This authorization represents an investment 
of one-tenth of one percent of that budget in 
the peace-keeping capacity of the United 
Nations. 

Whatever its imperfections, the United 
Nations' effectiveness and existence are an 
essential part of the machinery to bring 
peace out of this world of danger and dis- 
cord. 

I earnestly hope that the Congress will give 
early and favorable consideration to this 
request. j^^^^ p^ Kennedy 

note: An act to promote the foreign policy of the 
United States by authorizing a loan to the United 
Nations and the appropriation of funds therefor 
(PubUc Law 87-731, 76 Stat. 695) was approved 
by the President on October 2, 1962. 



25 Special Message to the Congress on Agriculture. 
]anuary 31, 1962 



To the Congress of the United States: 

Management of our agricultural resources 
to meet the triple goals of increased farm 
income, lovi^er cost to the taxpayer, and re- 
duced farm surpluses continues to be one of 
the most difficult problems confronting the 
Nation. A good start was made last year. 



Net farm income rose $1 billion, and income 
per farm increased almost $350. Govern- 
ment stocks of farm products v^ere reduced 
for the first time in 9 years. Budgetary costs 
v/ere below those that would have been in- 
curred under the programs that were re- 
placed. All this was accomplished at the 



82 



John F. Kennedy, 7962 



Jan. 31 [25] 



same time food prices were reduced below 
their level a year earlier. 

But the emergency programs enacted last 
year are expiring. There is a critical need 
for permanent legislation to consolidate the 
gains of 196 1 and to provide a realistic and 
comprehensive program for agriculture in 
the years ahead — ^a program with which we 
can continue to move forward toward full 
utilization of our abundance. The drift 
toward a chaotic, inefficient, surplus-ridden 
farm economy, though halted last year, will 
resume unless prompt action is taken. In 
addition, new problems have developed in 
commodities not covered by the 1961 legis- 
lation. Unanticipated changes in consumer 
demand have produced still further sur- 
pluses. A reversion to the former programs 
for wheat and feed grains will inevitably 
bring both enormous surpluses and de- 
pressed farm income, seriously injuring a 
large segment of our economy. 

Our increasing productivity 

Our rapidly growing capacity to produce 
far outruns the growth of our domestic and 
foreign demand for food and fiber. This 
offers us an opportunity to manage abun- 
dance, rather than scarcity, an opportunity 
that is unique among nations of the world. 
It is relatively new even for the United 
States. 

Early in this century there was serious 
question whether agriculture could, with 
the closing of the land frontier, continue to 
meet the food and fiber demands of a grow- 
ing population. The rate of growth in farm 
output was declining, and food and fiber 
prices were rising relative to other prices. 
Public policy emphasized resource con- 
servation and investment, and publicly 
supported research and education were de- 
signed to speed progress in agricultural 
productivity. 

By the mid-1920's, these efforts began to 
bring dramatic results. Agricultural produc- 
tivity began to rise and farm employment 
began to decline. But the full implications 



of this rapid technological progress in agri- 
culture were obscured — ^first by the depres- 
sion, then by the second World War, and 
then by the Korean conflict. During the 
depression the overriding problem was the 
catastrophic decline in demand for farm 
products, and policy was directed to pro- 
tecting farm prices and incomes from its 
consequences. During the war and the 
Korean conflict, agricultural programs were 
designed to encourage increases in output to 
meet emergency demands and to protect 
farm incomes when these abnormal demands 
disappeared. 

But in the 1950's, agriculture felt the full 
effects of earlier programs to raise produc- 
tivity. Farm output increased by more than 
one-fourth while use of labor declined by 
one-third. Surpluses accumulated and farm 
prices were brought under increasing pres- 
sure. Prices today are lower relative to 
other prices than during the first two dec- 
ades of this century, even though crops are 
now harvested from 40 million fewer acres. 
The technological revolution in agriculture 
continues to increase yield at an accelerating 
rate. Our ability to produce more than the 
market can absorb will continue as far into 
the future as we can safely predict, out- 
pacing population growth. Instead of a 
shortage of cropland, as many have long 
predicted, it now appears that by 1980 we 
will need 50 million fewer acres than we 
have today. 

The commodity programs which were 
designed primarily to meet the emergencies 
of depression and war have retained for agri- 
culture itself only a small part of these gains 
from increasing productivity. Most of the 
gains have been passed on to consumers. We 
spend less than 20 percent of our income on 
food; the Western European spends between 
30 and 50 percent of his income on food; 
and the Russian uses 60 percent of his in- 
come for this same purpose. But failure to 
control production effectively has dissipated 
some of our potential gains to both farmers 
and consumers by drawing prime resources 



83 



[25] Jan. 31 



Public Papers of the Presidents 



into the production and storage of surplus 
commodities. 

The need for action 

Most industries are able to adjust to excess 
supply or reduced demand by variations in 
their rate of production. The larger the 
number of individual producing units and 
the more inflexible their production sched- 
ules, however, the more difficult it is to make 
the necessary adjustments. Our farm pro- 
duction is composed of millions of separate 
producers w^ith schedules that must be 
planned a year or more in advance. Acting 
individually, the farmer cannot shift readily 
av^ay from commodities in surplus. Nor 
v^ill lower farm prices automatically assure 
reduced farm output, unless those prices fall 
to disastrous levels and remain there. His- 
torically, lower prices have been met by in- 
creased output, in a desperate effort by the 
farmer to make his business profitable and 
to stay on the land. 

Four independent studies, by Cornell 
University, Iowa State University, the Joint 
Economic Committee of Congress, and the 
Senate Committee on Agriculture and For- 
estry, show how sharp would be the drop 
in farm prices and farm income if farm 
programs were abandoned. These studies 
agree that wheat prices would be sliced al- 
most in half, oats prices 25 percent, barley 
28 percent, soybeans 38 percent, grain sor- 
ghums 22 percent, and dairy 17 percent. 
Non-price-supported commodities would 
also suffer. Livestock commodities would 
drop 24 percent, tgg prices 20 percent, cattle 
prices 25 percent, hogs 30 percent, and broil- 
ers and turkeys even lower than this year. 

Nor can the Federal Government be ex- 
pected to undertake an indefinite program 
of large and unpredictable budget expendi- 
tures to acquire stocks of commodities that 
we do not need and cannot use. By the 
beginning of 1961 — when the emergency 
legislation was introduced to reduce inven- 
tories — the Commodity Credit Corporation 
had over $9 billion in loans and inventories. 
Carrying costs exceeded $1 billion a year. 



This large and continuing expenditure 
did not result in any increased income to 
the farmer. The 1.5 million efficient family 
farms which produce 87 percent of our 
total production are technically progressive, 
but their return on labor and capital has not 
kept pace with the rest of the population. 
Their incomes are highly sensitive to year- 
to-year fluctuations in farm output, espe- 
cially when it is unrelated to demand. 

The other 2 million or more farm oper- 
ators who produce 13 percent of all farm 
products sold have especially low incomes 
because they own or control too litde land 
or too little capital, and often possess too 
little skill or managerial ability. 

Small town and rural America is de- 
pendent for prosperity upon the farmer. An 
improvement in his standard of living and 
in his income is immediately reflected in an 
improvement in the economy of the small 
urban center in his community. Any pro- 
gram should bear in mind this factor. 

Our two goals — improving income and 
reducing costs — can both be achieved only if 
farm output can be reduced below needs for 
several years and then be allowed to increase 
at a rate equal to the growth in demand. 
That is the framework of logic and fact in 
which we now propose a broad new farm 
program — a program in four parts — each 
equally important and all interdependent. 

Objectives 

The new program should use the success- 
ful emergency legislation passed last year 
to establish guidelines and should also rely 
upon those proven techniques and methods 
that have been employed in the past. It 
should be designed: 

1. To make maximum use of our pro- 
ductive abundance. Our agricultural re- 
sources can advance the cause of peace and 
freedom throughout the world; they assure 
Americans of a high standard of living; they 
can be an important weapon against poverty 
and disease. 

2. To seek a balance between production 
and demand that will avoid the waste of 



84 



John F. Kennedy, 7962 



Jan. 31 [25] 



private effort and public resources. Rice, 
peanuts, and tobacco already enjoy well- 
balanced programs whose principles can be 
extended to other crops. Properly balanced, 
agriculture can make a major contribution 
toward economic stability. The farmer, the 
consumer and the taxpayer can all share in 
the benefits; without such balance, all may 
suffer. 

3. To provide for conservation of our land 
and water resources. Land and water not 
needed to produce food and fiber should 
be directed to alternative uses of benefit to 
the Nation. 

4. To initiate and expand programs for 
the development of human resources and 
renewal of rural communities. Each year i 
million people move from the farm to the 
city. Many others seek part-time employ- 
ment to supplement meager returns from 
farm labor. The hardship and suffering 
this often entails should be alleviated, and 
these workers assisted in their efforts to ac- 
quire needed skills, obtain jobs, and further 
their education. 

Abundance, Balance, Conservation, De- 
velopment — these are our common sense 
goals — as common sense as A B C D. The 
program that follows — an A B C D farm 
program for the '6o's — is designed to meet 
those goals. 

This is a program for maximum freedom 
and flexibility in the operation of individual 
farm enterprises. Improvements in farm- 
ing efficiency as well as shifts among enter- 
prises must not only be allowed — they must 
be encouraged. They are in the long-run 
national interest; they are consistent with 
this program's overall objectives. 

The new commodity programs recom- 
mended could become effective only after 
they are approved democratically by a two- 
thirds majority in a producer referendum. 
Producers of cotton, tobacco, rice, peanuts 
and wheat have long followed this procedure 
of choosing jointly to exert a measure of 
control over the production and marketing 
of their crops, just as industry groups ex- 
ercise control over the product of their labor 



and investment. This democratic proce- 
dure can be extended to other farm 
commodities. 

I. Expanded use of agricultural abundance 

Last year there was a greater expansion 
of our food utilization programs than ever 
before in our history. 

Eighty-five thousand more schools, child 
care centers and camps are receiving fresh 
milk that previously had no such oppor- 
tunity. Seven-hundred thousand more chil- 
dren enjoy a hot school lunch. Both the 
quantity and the variety of food distributed 
to more than six million needy persons has 
been increased substantially. 

A pilot food stamp program in eight com- 
munities has brought such encouraging re- 
sults that its administrative expansion in a 
further trial period to many additional com- 
munities is justified and is included in the 
new Budget. 

We have also increased our shipments of 
food to other nations under P.L. 480, thus 
using our agricultural abundance to combat 
hunger and contribute to economic develop- 
ment throughout the free world. We have 
stepped up our emphasis on school lunch 
programs abroad, thus encouraging both 
education and better nutrition for the rising 
generation, on which so much of the future 
of these new nations depends. We shall 
continue to expand these programs wher- 
ever feasible. 

We have markedly increased programs 
under which U.S. food is used to further 
projects for social and economic development 
in emerging nations. Today American agri- 
cultural abundance assists such projects in 
eleven countries, as compared with only two 
in i960. And more than three-fourths of the 
local currency accruing from the sales au- 
thorized under Title I in 1961 will be used 
for economic development programs. 

Our overall shipments under P.L. 480 
during this fiscal year will reach an estimated 
22 percent more than those of the previous 
fiscal year. 

Last year the Congress extended and im- 

85 



[25] Jan. 31 



Public Papers of the Presidents 



proved P.L. 480. In order that our Food for 
Peace program can be made even more effec- 
tive in the future I recommend: 

(i) An amendment of Tide II of P.L. 480 
to permit shipments of surplus commodities 
such as dried beans and peas not in CCC 
inventory; 

(2) Provisions to broaden the purpose of 
Tide IV to include market development; 
and 

(3) A new Tide V to promote multina- 
tional programs for food assistance, author- 
izing the President to negotiate and carry 
out agreements for this purpose with inter- 
national organizations and other intergov- 
ernmental groupings. 

II. I recommend new programs for feed 
grains, wheat, and dairy products to achieve 
the proper balance between production and 
demand, and modification of the cotton 
program. 

Feed Grains 

For 9 consecutive years, prior to 196 1 feed 
grain surpluses increased. The cost of carry- 
ing corn and grain sorghum inventories rose 
to nearly $500 million in 1961, and the total 
program cost rose to a record level. 

The 1961 feed grain program has reversed 
this trend. The 1961 crop was 800 million 
bushels smaller than it would have been 
without the program. The feed grain carry- 
over will drop for the first time in a decade. 
A program similar to that of 1961 remains 
in operation for 1962 only. Without new 
legislation, the programs which failed us in 
the 1950's will automatically take effect again 
in 1963. 

The feed grain program I recommend is 
designed to reduce feed grain output to a 
level that will maintain prices and incomes 
in the feed grain and livestock sectors of the 
farm economy without continuous ever- 
higher surplus accumulation. This can be 
accomplished by establishing a mandatory 
acreage allotment on all feed grains large 
enough to meet annual domestic and export 
requirements, for all purposes under all pro- 



grams, less that amount which is to be de- 
ducted from the carryover stocks to reduce 
them gradually to a level no higher than that 
required for stability and security. Pro- 
ducers would share in the national allotment 
on the basis of past production, adjusted for 
unusual circumstances. Payments for di- 
verted acreage would, of course, continue to 
be made to support farm income while sur- 
plus stocks are being reduced. 

Initiation of this program is proposed for 
the 1963 crop year, subject to approval by a 
producer referendum. 

Wheat 

The problems of wheat production are 
much the same as for feed grains. Large 
inventories and high program costs were 
inherited from the 1950's. The temporary 
1962 wheat program is expected to halt the 
accimiulation of wheat surpluses, but the old 
programs — ^which have already failed — will 
become effective again for the 1963 crop 
unless legislation is prompdy enacted. 

I recommend a wheat program which will 
reduce wheat stocks to manageable levels, 
improve the competitive position of Ameri- 
can wheat in world markets, and maintain 
the incomes of wheat producers. To achieve 
these objectives, national wheat acreage allot- 
ments will be established by estimating the 
actual requirements each year for milling, 
seed, and for export, and deducting a num- 
ber of bushels that will permit us to draw 
upon our surplus stocks on hand to gradually 
reduce the carryover to the level required for 
stability and security. Marketing certificates 
would be used to assure growers a price sup- 
port level between 75 and 90 percent of 
parity on the domestic allotment and up to 
90 percent on the export allotment. The 
national allotment would be apportioned 
among all growers, including small growers, 
on the basis of past wheat acreage. The 
Secretary of Agriculture will have authority 
to make payments, which will help to main- 
tain producers' incomes, for mandatory di- 
version of acreage from wheat to soil-conserv- 



86 



John F. Kennedy, 7962 



Jan. 31 [25] 



ing uses, and to offer such payments as an 
incentive for further voluntary acreage 
diversion. 

Initiation of this program is necessary for 
the 1963 crop year. As in the case of feed 
grains, it would be subject to approval by 
a producer referendum. 

Cotton 

Cotton suffers chiefly from the attempt 
to adopt a single legislative program to 
widely divergent crop needs. There is a 
sharp conflict between the demand for cheap 
cotton that can compete effectively with sub- 
stitute fibers and the need for support levels 
high enough to assure farmers an adequate 
income; between the interest of textile mill 
owners — ^who face stiffening world com- 
petition — in low raw material costs and in 
the interest of the producer in income suf- 
ficiendy high to cover his costs; and between 
our nation's desire to expand further our 
world trade in cotton and to hold down a 
Federal budget already augmented by cot- 
ton export subsidies. These conflicts can 
best be reconciled by a program which estab- 
lishes a support price upon allotted acreage 
but permits efficient producers to grow addi- 
tional acreage at the world price. 

I recommend that the Secretary of Agri- 
culture be given authority to: 

1. Establish the acreage allotment at a 
level which would produce the cotton needed 
for domestic use and such portion of the cot- 
ton exports as he may determine. 

2. Authorize growers to exceed their farm 
acreage allotment by up to 30 percent, with 
the cotton produced on the additional acre- 
age to be marketed under a plan which will 
net the grower approximately the world 
market price. 

Dairy Products 

Milk and dairy products constitute one 
of our most important sources of nutrients. 
They are also one of our most valuable 
farm products, bringing twice the cash in- 
come of the basic crops. 



Incomes of dairy farmers were improved 
by the bill passed by Congress late in i960 
to increase the support price for milk from 
$3.06 to $3.22 per hundred pounds and by 
the increase in the support price last March 
to $3.40 per hundred pounds for the current 
marketing year. 

Unfortunately, milk producers now face a 
serious setback. An unexpected decline in 
the consumption of milk during the past 
year, amounting to nearly 3 billion pounds, 
will result in government expenditures this 
year of approximately $500 million to sup- 
port the prices of dairy products. There is 
no evidence as yet that this decline in con- 
sumption will be reversed in the year ahead. 
Under the present law, the Secretary of Agri- 
culture is not authorized to set the price 
support rate for milk above 75 percent of 
parity unless, "necessary in order to assure 
an adequate supply." Under this law, in 
the present supply situation, the reduced 
support price must be announced for the 
marketing year beginning next April i. 

Such a reduction in milk price supports 
will gravely impair the incomes of milk 
producers. It will not, however, succeed 
in reducing government expenditures to a 
reasonable and justifiable level. Even at 
75 percent of parity — the minimum level 
specified in the present law — government 
costs for supporting prices of dairy products 
will probably exceed I440 million next year, 
as production continues to exceed consump- 
tion. 

New legislation to correct the shortcom- 
ings of the present dairy price support laws 
is, therefore, urgendy required, for the bene- 
fit of both farmer and taxpayer. I recom- 
mend passage by the Congress of legislation 
which will: (a) maintain the income of the 
dairy farmers by establishing support prices 
of up to 90 percent of parity under a supply 
management program; and (b) reduce the 
budgetary expenditures for the dairy price 
support program to the cost of acquiring 
dairy products needed for domestic welfare 
and foreign assistance programs, up to a 



87 



[25] Jan. 31 



Public Papers of the Presidents 



maximum of $300 million per year, plus 
the costs incurred in the special milk and 
school lunch programs. 

Each milk producer would be assigned a 
marketing base equal to his marketings of 
milk in 1961. His marketing allotment for 
the current year would reflect a percentage 
of his base proportionate to his share of the 
estimated commercial demand and the 
quantities needed for government programs 
in the national interest. Producers who 
market milk in excess of their allotments 
would pay surplus marketing fees on such 
milk, which would be used to purchase and 
dispose of the surplus products produced 
from excess milk. 

Milk producers would be provided an 
opportunity to vote upon this program in a 
referendum. In the event the milk pro- 
ducers reject this program a support price 
would be established at such a level as to 
limit budgetary expenditures to $300 million 
a year. Authority is also requested to in- 
clude supply management provisions in Fed- 
eral milk marketing orders when desired by 
milk producers in markets regulated under 
such orders. 

While this legislation is being considered 
and implemented, in order to prevent dis- 
ruption of markets by reduction of price 
supports to 75 percent of parity as required 
under the present law on April i, 1962, I 
recommend enactment of a joint resolution 
authorizing the continuation of price sup- 
ports on dairy products at the current level 
until December 31, 1962. 

III. Efficient conservation and utilization of 
land 

The scope of agricultural technology 
promises abundance tomorrow as well as 
today. For the first time in our history we 
can confidently predict that our future food 
and fiber needs can be met with fewer acres 
of cropland. In spite of a 65 million increase 
in population by 1980, our farms will be 
able to produce all we need with 50 million 
fewer acres than we have in cropland today. 

This prospect offers us an opportunity to 



take advantage of the unused acres for a 
wide range of recreational, aesthetic, and 
economic purposes. Land use changes are 
not only important to balanced production, 
they can also supply the growing demand for 
outdoor recreational areas and wildlife pro- 
motion, for woodlots and forests, and for 
grazing. We can transfer cropland to grass 
and trees — ^and we can place greater em- 
phasis on wildlife and recreation develop- 
ment in the small watershed programs. 

I recommend legislation to encourage a 
comprehensive survey of land uses, to under- 
take a research program on the conversion 
of land to alternate purposes, and to initiate 
a series of pilot and demonstration land use 
projects. As the pilot plan is evaluated and 
a permanent program for land use devel- 
oped, it will be possible for our supply man- 
agement efforts to place less emphasis on 
temporary diversion of acreage from the 
production of specific crops, and more on 
the permanent utilization of acreage to 
fulfill other public needs. 

An effective land use program also re- 
quires the following additional legislation: 

1. Amendment of the Soil Conservation 
and Domestic Allotment Act to expand the 
agricultural conservation program to include 
payments and cost sharing arrangements, 
under long-term contracts, which would per- 
mit changes in cropping systems and land 
uses for the conservation and develop- 
ment of soil, water, forests, wildlife and 
recreational resources. 

2. Amendment of the Bankhead-Jones 
Farm Tenant Act to include the use of land 
acquired under that Act for recreational 
development and wildlife protection. 

3. Amendment of the Watershed Protec- 
tion and Flood Prevention Act to permit the 
Secretary to share in the cost of any land 
acquired by local organizations for opera- 
tion as a reservoir of public fish, wildlife or 
recreational development. 

4. Modification of the Watershed Act to 
provide for loans for recreational facilities. 

5. Expansion of the authority of the 
Farmers Home Administration to make 



88 



John F. Kennedy, 7962 



Jan. 31 [25] 



loans to farmers for recreational enterprises. 
Additional legislation for conservation of 
our renewable resources is also necessary. 
These recommendations will be included in 
a message I will send to the Congress de- 
voted to proposals for the maximum utiliza- 
tion of our land resources. 

IV. Development and utilization of 
agriculture's human resources 

The Department of Agriculture has 
launched a series of programs for the de- 
velopment and renewal of rural areas and 
rural communities. These programs are 
designed to end rural poverty by offering 
new opportunities — ^both agricultural and 
nonagricultural — to rural people. Activities 
of the Rural Electrification Administration, 
the Farmers Home Administration, the Fed- 
eral Extension Service and other Depart- 
ment agencies are being coordinated under 
the Rural Area Development program in 
close cooperation with the Area Redevelop- 
ment Administration. 

To make the most of the human resources 
in these rural areas, there is one need that 
transcends all others — ^that is education. 
Education can give them new vistas, new 
opportunities, new skills in place of the 
poverty that no price support program will 
ever remove. 

Most of the necessary activities are already 
authorized by law. However, some addi- 
tional authority is needed. 

In many rural areas, the difficulty of 
financing adequate safe and sanitary hous- 
ing and modern community facilities such 
as water and sewage systems, recreational 
installations, and transportation,, has de- 
terred general community improvement and 
more rapid industrialization. I recom- 
mend, therefore, new legislation to enable 
the Farmers Home Administration to fi- 
nance sewage systems and other rural com- 
munity facilities. 

Rural Renewal and Education 

In some rural areas the general level of 
economic activity and family income is so 



low, and the lack of community facilities so 
acute, that a complete new development 
operation is the only sensible solution — a 
program of "rural renewal." 

For these areas, in addition to the nation- 
wide rural area development program, I 
recommend a new legislative program under 
the Area Redevelopment Administration, 
to provide loans and technical assistance to 
local public rural renewal corporations. 
These corporations would aid in developing 
new uses for land and water, create forest 
industry parks, assist small farmers in farm 
consolidation and enlargement, and develop 
needed public facilities, including outdoor 
recreation. The bill would permit loans to 
approved public agencies to acquire, develop 
and dispose of land for these purposes, and 
provide for other loans to individual farm- 
ers to establish recreational facilities and 
other income producing enterprises. Con- 
sideration might also be given to making 
loans available to rural citizens, both young 
and old, for vocational and other educational 
training not otherwise available but essential 
to their preparation for non-farm jobs. 



CONCLUSION 



The goals of this program for Food and 
Agriculture are goals on which there is broad 
general agreement. 

First, we seek to enable efficient farm 
operators to earn incomes equivalent to those 
earned in comparable nonfarm occupations. 

Second, we seek continued production of 
food and fiber at reasonable prices in quanti- 
ties sufficient to meet the needs of all Ameri- 
cans and to combat hunger and contribute 
to economic development throughout the 
free world. 

Third, since we seek abundance for our 
children as well as for ourselves, we must 
conserve and use wisely our resources of land 
and water. 

Fourth, we seek to end rural poverty. 
Farm children, and many farm adults as 
well, need improved opportunities for edu- 
cation and training, to equip them to earn 
an American standard of living in whatever 



715-405 0^64- 



-10 



89 



[25] Jan. 31 



Public Papers of the Presidents 



occupation they freely choose to follow. 

We will enjoy the fruits of the technologi- 
cal revolution in American agriculture only 
if we recognize its implications. We must 
learn to live with an agricultural economy of 
abundance rather than scarcity. That is the 



purpose of the approach I have outlined — 
a comprehensive, long-range program to re- 
place the present patchwork of short-run 
emergency measures. 

John F. Kennedy 



26 Message to the G^ngress Transmitting Report "United States 
Aeronautics and Space Activities, 1961." January 31, 1962 

To the Congress of the United States: 

In accordance with Section 206(b) of the 
National Aeronautics and Space Act of 1958, 
as amended, I transmit herewith a report for 
the calendar year 1961, on this nation's aero- 
nautics and space activities. 

During 1961, major attention was devoted 
to establishing our policy objective of space 
leadership and to accelerating our efforts to- 
ward achieving that objective. 

In my Message to the Congress on May 25, 
1961, I stated that a leading role in space 
achievements may well hold the key to this 
country's future. That I reaffirm. Last year, 
we made necessary decisions and, with the 
support of the Congress, stepped up the pace 
of performance. Even greater strides must 
be made in the coming months and years, 
and thus the recommended budget which I 
submitted to the Congress earlier this month 



contains requests for funds for the Fiscal 
Year 1963 Space Program, totalling $5.5 
billion, an increase of I2.4 billion over FY 
1962 and $3.7 billion over FY 196 1. 

It is the policy of the United States that 
activities in space be devoted to peaceful pur- 
poses and during 196 1 we made significant 
progress in that regard. Such progress in- 
cluded space projects to help keep the peace 
and space projects to increase man's well- 
being in peace. 

In summary form, the accompanying re- 
port indicates the contributions of the various 
departments and agencies of the government 
to a national space program. 

John F. Kennedy 

note: The report is printed in House Document 324 
(87th Cong., 2d sess.). 



27 The President's News Conference of 
January 31, 1962 



THE PRESIDENT. Good aftcrnoon. 

[i.] I want to — I take pleasure in wel- 
coming the editor of Izvestia and Mrs. 
Adzhubei, to this Presidential press confer- 
ence. He is, as I said, editor of a paper 
which carried our interview last November, 
and he's also a member of the Central Com- 
mittee, and therefore combines two hazard- 
ous professions, of politics and journalism, 
and also Mrs. Adzhubei, who is the daughter 
of the Chairman. We're glad to have them 
here to observe an ancient American custom. 



[2. ] Secondly, I want to express my satis- 
faction, and I believe that of all Americans, 
at the action taken by the Organization of 
American States at the Punta del Este con- 
ference. Six resolutions, representing a six- 
point program, were passed by the confer- 
ence early this morning. Not a single nation 
joined Cuba in voting against these resolu- 
tions. The 20 other nations of this confer- 
ence joined in a vigorous declaration against 
Communist penetration of this hemisphere, 
in full support for the Alliance for Progress, 



90 



John F. Kennedy, 7962 



Jan. 31 [27] 



and to expel Cuba from the Inter-American 
Defense Board. For the first time, the inde- 
pendent American states have declared with 
one voice that the concept of Marxist Lenin- 
ism is incompatible with the inter- American 
system, and they have taken explicit steps to 
protect the hemisphere's ability to achieve 
progress with freedom. 

[3.] Thirdly, I have an important an- 
nouncement to make about the national 
stockpiling program. The purpose of this 
program over a period of several years has 
been to store for future use those strategic 
materials which might be essential to the 
Nation in the event of an emergency. After 
a review of this program, upon assuming the 
responsibilities of office, I was astonished to 
find that the total stockpile now amounts to 
some $7.7 billion worth of materials, an 
amount that exceeds the CCC's total inven- 
tory of farm products, and of more impor- 
tance, an amount that exceeds our emer- 
gency requirements as presendy determined 
by nearly $3.4 billion. In some cases the 
Government had acquired more than seven 
times the amount that could possibly be used. 
For example, the value of the aluminum in 
this stockpile exceeds the amounts we would 
need for 3 years in the event of war by $347 
million. The excess supply of nickel is $103 
million. This administration has taken steps 
to halt any new acquisitions to the stockpile 
with the exception of three items, still criti- 
cally short, and on which we have spent less 
than $2 million. Unfortunately, the surplus 
of other materials is still growing, as the 
result of contracts negotiated prior to this 
administration's taking office. 

It was apparent to me that this excessive 
storage of cosdy materials was a questionable 
burden on public funds and, in addition, a 
potential source of excessive and unconscion- 
able profits. Last spring a detailed check 
was ordered, and our information to date 
has convinced me that a thorough investiga- 
tion is warranted. The cloak of secrecy 
which surrounded this program may have 
been justified originally to conceal our short- 
ages, but this is no longer the case, and 



secrecy now is only an invitation to misman- 
agement. 

I have therefore discussed this matter with 
Senator Symington, chairman of the Senate 
stockpiling subcommittee. He agrees that 
the program should be completely explored, 
and without delay. I have assured him that 
we will make available to his subcommittee 
all the material we have already discovered 
and that the executive branch will cooperate 
fully with any investigation. 

In the meantime, I have directed the vari- 
ous departments and agencies to accelerate 
their review of materiel requirements and 
I am appointing a commission to make a 
detailed review of our stockpiling policies, 
programs, and goals, in the light of changed 
defense strategy and improved technology. 
I am very much aware of the intricate and 
interrelated problems involved in this area, 
including the difficulties experienced by 
certain domestic mineral industries, the im- 
pact on world markets, and the heavy reli- 
ance of certain countries on producing one 
or more of these minerals. And I can say 
that we will take no action which will 
disrupt commodity prices. 

All of these factors in a careful review 
of the program will be taken into account, 
but the full facts on this matter must be 
open to the public. 

[4.] Q. Mr. President, do these recent 
manifestations of cordiality between the 
United States and Russia — I am speaking 
specifically of your hospitality to Mr. 
Adzhubei, Mr. Salinger's conference in 
Paris with Mr. Kharlamov, Mr. Salinger's 
forthcoming visit to Moscow — do these evi- 
dences equate in any way with an increase 
or improvement in the prospects for settle- 
ment of such basic issues as Berlin? 

THE PRESIDENT. Well, of course, we would 
like to have a settlement of the basic issues 
which have divided the Soviet Union and the 
United States. The meetings— i think two 
meetings took place between Mr. Adzhubei 
and Mr. Salinger, and out of those meetings 
came an interview which I think was very 
useful in helping us to express the viewpoint 



91 



[27] Jan. 31 



Public Papers of the Presidents 



of the United States on serious problems to 
the people of the Soviet Union. 

The conversations in Paris last weekend 
were directed to the same question. Mr. 
Salinger's visit in response to an invitation 
that he's received, is also directed to im- 
proving communications. We hope that as 
communications improve, that the problems 
which cause tension and danger to the 
world will lessen. The negotiations on these 
matters, however, of policy, are matters 
which are being conducted in this case by 
Ambassador Thompson, who, I believe, has 
a meeting with Foreign Minister Gromyko, 
tomorrow, at the third meeting, so-called 
probes in regard to the matter of Berlin. 

We're hopeful that these will bring a 
happy result. But I believe that any ex- 
change of information, any exchange of 
views, any cooperation of any kind in these 
very hazardous times is very useful, so we're 
glad for them. And we are glad when they 
treat Americans as they do with courtesy 
when they visit Moscow. 

[ 5. ] Q. Mr. President, in your statements 
on stockpiling, is there any implication of 
wrongdoing by an individual? 

THE PRESIDENT. I think that — no, I'm not 
making any implication. The only thing 
is I think that this is a large amount of 
money to be invested. I think the whole 
matter should be carefully looked into, 
contracts and all the rest, profits and so on. 
I would make no statement other than to 
say it's a matter which lends itself to a 
careful scrutiny by Senator Symington's 
committee and Senator Symington is most 
anxious to initiate such an investigation, 
which we both discussed last week and 
which we feel is overdue. 

But we'll certainly wait, in answer to your 
question, on the investigation, before mak- 
ing any judgments. 

[6.] Q. Mr. President, have you any 
reaction to the failure of some of our 
neighbors to the south— I am thinking of 
Argentina and Brazil— to go along with us 
all the way in our ambitions at Punta del 
Este? 



THE PRESIDENT. No. I think that I've indi- 
cated what I consider to be the most signifi- 
cant fact, which is on the basic question of 
the compatability of the Communist system 
with the inter-American system. I think 
there was a unanimity. 

[7.] Q. Mr. President, some of the crit- 
ics of your urban affairs plan charge that 
it's an invasion of States' and local rights. 
Would you comment on that, and would 
you also comment on it in a larger frame? 
For instance, what do you think of the 
argument that big government, so called, 
might not need to be so big if State and 
local governments were more efficient in 
fulfilling their duties? 

THE PRESIDENT. Well, in regard to the 
specific question on the — I don't believe 
that such a Cabinet position would inter- 
fere with the States. In my opinion it would 
supplement their efforts. There is a re- 
sponsibility which the States have for 
various — and each city has — ^for certain 
important functions in the life of every 
citizen, but the Federal Government also 
has one. 

There is a Department of Agriculture, 
which has contact with each individual 
farmer in the United States. That does not 
interfere with the county responsibility or 
the State responsibility. 

Now, in the urban message I sent up 
yesterday, I pointed out that in our 10 
leading cities, the citizens pay 35 percent 
of the income taxes paid in the United States. 
They have many serious problems which 
are increasing in time, particularly as our 
population increases by 3 million a year. 
I believe that these problems are entitled to 
a place at the Cabinet table. 

Now, I'm interested in charges about big 
government — and I read these speeches, and 
then I receive a wire asking for the Federal 
Government to take over the operations of 
the New Haven Railroad. And we send a 
wire back to the States, after having put 
$35 million into maintaining that railroad: 
"What action are the States prepared to 
take?" 



92 



John F. Kennedy, 7962 



Jan. 31 [27] 



My experience usually is that these mat- 
ters are put to the Federal Government by 
the request of cities, of States, or individual 
groups and it's not a question of the Fed- 
eral Government anxious to extend its role, 
but rather that there is a need and no 
one responds to it and the National Govern- 
ment, therefore, must meet its responsibility. 
And I believe that v^ith tv^o-thirds of our 
people in the cities of the United States that 
they should be up alangsidj£.o£the.atliers.ia 
the Cabinet, so that \ve can deal more effec- 
tively v^ith these programs. 

[8.] Q. Mr. President, there has been 
renev^ed fighting in Laos. Would you give 
us your evaluation of the situation there, 
whether or not this fighting w^ould threaten 
a political setdement, and also the situation 
in South Viet-Nam? 

THE PRESIDENT. Yes, the — of course if the 
fighting — hostilities began, the hope of a set- 
tlement v^ould be substantially diminished. 
There have been, as you know^, a series of 
tentative agreements. There is still a dis- 
agreement over v^ho shall hold particular 
cabinet positions. It is my understanding 
that there is scheduled to be a meeting at 
Luang Prabang on February 1 betv^een 
those leaders of the various groups within 
Laos. It is my earnest hope that both sides 
will refrain from hostilities after a cease fire 
which has been in effect generally since last 
May, so that we can see if a peaceful solu- 
tion can be reached. Because if hostilities 
begin, they bring reactions and counterre- 
actions, and all of the work which has gone 
on in the negotiations of the last months 
could go up in smoke and fire. So that I'm 
hopeful that both sides will give the parties 
who are involved an opportunity to meet 
and continue and see if a solution can be 
reached, and Fm hopeful that both sides will 
work earnestly toward that goal. 

The situation in Viet-Nam is one that's 
of great concern to us. There were, I think 
last week, nearly 500 incidents, deaths, 
ambushes and so on. It's extremely serious. 
The United States has increased its 
help to the government. I'm hopeful that 



the control commission will continue to ex- 
amine that and come to some conclusions in 
regard to the Geneva accords. 

We are anxious for a peace in that area, 
and we are assisting the government to 
maintain its position against this subter- 
ranean war. 

[9.] Q. Mr. President, a political ques- 
tion, sir. The Republicans are holding 
leadership conferences around the country, 
including one here in Washington today, 
with the purpose of upsetting the Democratic 
balance of power in congressional elections 
that are coming up. Would you care to 
comment on the task these Republican teach- 
ers have, and with what hope they might 
look toward success in the fall? 

THE PRESIDENT. No, I think that — I'm sure 
that I don't know who's giving the leader- 
ship direction but I'm sure that they'll have 
a varied program! 

[10.] Q. Mr, President, as part of our 
effort to show our good faith as a result of 
the Punta del Este meeting, is there any pos- 
sibility that this Government might reduce 
its trade with Cuba.f* Last year I under- 
stand we purchased from Cuba about $17 
million worth of goods in excess of what we 
sold, largely in the field of tobacco. I was 
thinking of giving up cigars for the dura- 
tion. Is that under consideration? 

THE PRESIDENT. WcU, as you know^, the 
trade which — the things we sell to Cuba 
have been foods and medicines, which I 
think the total amount, as I recall, was 
around $12 or $13 million. I think any 
decision in regard to trade would better wait 
until the Secretary returns and we've had a 
chance to discuss the matter with him. 

[11.] Q. Mr. President, visitors who go 
out to visit Lincoln Park on East Capital 
Street are dismayed to find it a slum. Con- 
gress has authorized and the National Coun- 
cil of Negro Women will erect there a 
memorial stadium and a statue of the great 
woman educator, Mary Bethune. Now the 
transit company proposes to put an eight- 
lane freeway between the park and the 
Capitol, cutting it off. Could you inquire 



93 



[27] Jan. 31 



Public Papers of the Presidents 



into that, and see if the freeway could be 
put further out beyond the park? 

THE PRESIDENT. Yes, I wili. [Laughterl 

You're very gentle today, Mrs. Craig. 

[12.] Q. Mr. President, does the United 
States intend to precondition the purchase of 
the $100 million of United Nations bonds 
on support of the other $100 million by other 
countries, and, if so, would not such a pre- 
condition serve to raise a question of earnest- 
ness in the support of the U.N. by all 
nations? 

THE PRESIDENT. Yes, I think there's an 
obvious relationship between the amount 
that we purchase and the amount that other 
countries take. We stated that we would 
take — ^that we would consider taking $100 
million worth of the bonds. It was our hope 
that other countries would take $100 million, 
I think the Canadians have indicated around 
$7 million, and the British $12 million, and 
I think the Scandinavian countries have 
given it careful consideration. I think Mr. 
Black, of the World Bank, has written to 
other governments, so that in answer to your 
question, there is a relationship obviously 
between what we could do and what others 
will do. I'm hopeful that both will meet 
their responsibilities in the matter. 

[13.] Q. Mr. President, in the debate 
just terminated in the Senate over the confir- 
mation of John McCone as Director of the 
Central Intelligence Agency, a considerable 
body of opinion indicated that they were 
concerned about the supervision over CIA. 
Have you done anything in your adminis- 
tration to increase Executive supervision 
over CIA, and what is your view toward 
giving Congress a greater share over the 
supervision of CIA? 

THE PRESIDENT. Well, as you know. Con- 
gress does have groups that have a responsi- 
bility over CIA. They provide the budget, 
and they also provide — receive reports and 
confer and exercise supervision at the present 
time. 

Secondly, I appointed General Taylor 
some months ago to be my representative in 



regard to matters affecting intelligence, and 
there are intergovernmental meetings in 
response to any activities that CIA might 
carry out with general supervision and it's a 
matter which has concerned me personally 
increasingly. So that those are the areas 
where there is control and I think it's up to 
all those who have control, as well as to Mr. 
McCone and the members of the CIA, to 
attempt to carry out their functions in a way 
which serves our interest, which I'm sure is 
their objective. 

[14.] Q. Mr. President, speaking of go- 
ing to Moscow, could you tell us under what 
conditions you would accept an invitation to 
visit the Soviet Union? 

THE PRESIDENT. I would think that an 
invitation — ^and an acceptance of an invita- 
tion — ^would probably wait on the easing of 
the tensions which unfortunately surround 
our relationship. And so that, for the pres- 
ent, of course, until we have significant 
breakthroughs, that sort of journey would 
probably not be considered useful by either 
country. But we, of course, are always hope- 
ful and we're making every effort that we can 
to bring an easing of tensions. And that's 
why Mr. Thompson is pursuing his course, 
and that's why we are making the other 
efforts that we're making. 

[15.] Q. Mr. President, could you tell us 
whether you expect any diflSculty in Con- 
gress with your Alliance for Progress pro- 
gram by reason of the opposition of some of 
the bigger Latin American countries at the 
Punta del Este conference? 

THE PRESIDENT. I think that I could prob- 
ably — ^the Congress, of course, has to make 
that judgment. In my opinion, the program 
is very essential; I think it was endorsed by 
20 nations, the Alliance for Progress. This 
is a long struggle to improve the life of the 
people in this hemisphere. I think we must 
go ahead, and I'm confident that the Mem- 
bers of the Congress when they come back 
will feel the same way. So that what has 
happened recently, in my opinion, makes 
more desirable and essential the Alliance for 



94 



]ohn F. Kennedy, 1962 



Jan. 31 [27] 



Progress. That is where our efforts ought to 
be, and that's where we can serve the cause 
of freedom and I think the interhemisphere 
system best. So I'm hopeful that Congress 
will agree. 

[16.] Q. Mr. President, two network 
chiefs recently have expressed fear of Gov- 
ernment supervision of the television net- 
works. The FCC has denied any such 
intention. Can you foresee circumstances 
under which FCC supervision of television 
programing might become necessary or 
useful? 

THE PRESIDENT. No. Do you mean of a 
different kind than now, a different rela- 
tionship than that which now exists? 

Q. Yes, over program content. 

THE PRESIDENT. No. I dou't. I think, as 
you know, the FCC does have certain regu- 
lations with regard to the percentage used 
in public service. Mr. Minow has at- 
tempted to use not force, but to use encour- 
agement in persuading the networks to 
put better children's programs, more public 
service programs. I don't know of anyone — 
and Mr. Minow has already denied con- 
sidering changing the basic relationship 
which now exists. 

[17.] Q. Mr. President, in connection 
with the situation in Laos, is Mr. Harriman 
in touch with his opposite Soviet number in 
order to get the cooperation of the Soviet 
Union in reducing the heavy infiltration of 
Viet-Nam units in Laos? 

THE PRESIDENT. Mr. Harriman, the Assist- 
ant Secretary, has indicated, as has the State 
Department, as have I, the great dangers 
in — to both sides in a resumption of hostili- 
ties. And we are making every effort to 
attempt to get an accord before this cease- 
fire, which appears to be strained somewhat, 
after many months, to try to get an accord 
before we have a breakdown of the cease- 
fire, and that is true of both sides. 

[18.] Q. Mr. President, last year the ad- 
ministration put forward no civil rights 
legislation. Now the administration has 
submitted a bill on literacy tests in voting 



and Secretary Goldberg has endorsed "in 
principle" an FEPC bill. Does this mean 
the administration has suddenly decided to 
go further on the legislative route in the 
civil rights field? 

THE PRESIDENT. I think that my State of 
the Union Address said that wc would 
comment on the various bills, of which 
there are a great many that have been intro- 
duced. And that's what Secretary Goldberg 
did. In addition, I made specific reference 
to the question of voting, and literacy tests, 
and Senator Mansfield has indicated action 
would be on that bill. So it seems to me 
that we are where we said we would be in 
the State of the Union Address. 

[19.] Q. Mr. President, is there a small 
war imminent between Floyd Patterson and 
Sonny Liston? 

THE PRESIDENT. Well, that's a matter that 
you ought to talk to Mr. Patterson about. 
He hasn't confided fully in me. 

[20.] Q. Mr. President, in your state- 
ment on stockpiling policy, you referred 
to three items you felt were understockpiled. 
You didn't indicate what those were, and 
what considerations apply. Could you 
supply those for us? 

THE PRESIDENT. I think that this — as I 
say, the whole matter of stockpiling is a 
matter which would wait on Senator 
Symington. I did say that they involved, 
I think, the sum of about $2 milUon, so 
they're not significant, but they are in short 
enough supply so that we are continuing 
those purchases. But they are not of major 
proportions, though they are in this case 
significant. 

[21.] Q. Mr. President, they told us you 
took a cab ride or a limousine drive across 
from your house last night, at Lafayette 
Square, to inspect it. And in connection 
with that, you are familiar with the old 
Belasco TTieater on Lafayette Square which 
now houses the United Services Organiza- 
tion home for the thousands of enlisted 
military people in the area. That theater 
as you know is going to be torn down. 



95 



[27] Jan. 31 



Public Papers of the Presidents 



Does the Government and specifically you, 
as Commander in Chief, have any plans to 
place these people in a suitable area? 

THE PRESIDENT. The USO? 

Q. Yes, sir. 

THE PRESIDENT. Well I'm sure w^e'U be 
delighted to cooperate with the USO in 
getting satisfactory facilities. Last night I 
was looking at the question of the building 
next to Blair House, whether that ought to 
come down, the court building, whether 
that ought to come down or trees should 
be planted there, and I thought that — in 
agreement with the Fine Arts Commis- 
sion that trees should be planted there. 
[Laughter'] 

[22.] Q. Mr. President, what effect do 
you believe the most recent collapse of the 
nuclear test ban negotiations with the Soviet 
Union will have on the possibilities for 
success in the coming March 14 Geneva dis- 
armament talks? And will this collapse 
have any effect on your decision, if any, to 
resume nuclear testing? 

THE PRESIDENT. Well, no progress was 
being made in developing a test ban which 
would have adequate inspection, and there- 
fore we felt that it should be moved into the 
general disarmament conference, which 
begins on the 14th. 

This failure, as I said somewhat earlier, 
represents the biggest disappointment of my 
first year in office, and continues to be a 
disappointment, because every action here 
as I say, breeds a response, and we have been 
anxious from the beginning to get an agree- 
ment which would prohibit tests with an 
adequate inspection. Now, we haven't been 
able to adjust that satisfactorily. Therefore 
it will put an additional burden and an 
additional opportunity before the Disarma- 
ment Commission. And of course our fail- 
ure to get an agreement does increase the 
likelihood of various countries testing. 
That's one of the reasons why I was anxious 
that we get an agreement. 

[23.] Q. Mr. President, on this question 
of the changed atmosphere between the U.S. 
and the Soviet Union of late, just to set the 



record straight, is this so far entirely a matter 
of atmospheric or is there in any of the 
negotiating issues across the board any 
indication of the possibility of an agree- 
ment? 

THE PRESIDENT. I would say that on the 
question of Laos, that there has been evi- 
dence of a desire by the Soviet Union and 
the United States to come to the agreement 
along the lines suggested by Chairman 
Khrushchev and myself last June. On the 
question of Berlin and Germany, I don't 
think that significant progress as yet has 
been made. But I do think, as I've said, that 
the means of communication and the chan- 
nels of communication should be kept very 
widely open, which has been a basic premise 
of ours for the last few months; which is the 
reason that Ambassador Thompson is work- 
ing. Any way we can lessen the chance of 
danger, as I said at the beginning, we will 
explore. So that I think that attempts to 
separate the facts of the matter from what 
you would call atmosphere, though atmos- 
phere can be very important in our lives, 
as we see every day. 

[24.] Q. Sir, independent oil producers 
have urged you to take action quickly, even 
before completion of the Ellis study about 
June, to reduce oil imports. Now this week 
the independents are urging Congress to 
write into your trade program a provision 
reducing crude imports about 250,000 bar- 
rels daily and limiting them in the future to 
14 percent of domestic crude oil production. 
Sir, do you think that the domestic pro- 
ducers will receive any relief from Executive 
action in the near future, and do you favor 
tightening of import controls on oil by such 
legislation as they propose? 

THE PRESIDENT. Well, iu the first place, as 
you've suggested, this is a matter which is 
still being examined by Mr. Ellis' commis- 
sion. In regard to legislation, I'm not 
familiar with this proposal; it's the first I've 
heard about it. There are, of course, obvious 
difficulties traditionally in attempting to 
write in quota restrictions on various com- 
modities in any kind of trade legislation, be- 



John F. Kennedy, 7962 



Jan. 31 [27] 



cause one begets another, and we can find 
ourselves with a whole series of limitations 
and exclusions which is the reason, I think, 
that Franklin Roosevelt originally came for- 
ward with the reciprocal trade program. 
But we are very much aware of the concern, 
the fact that in some of our States that the 
wells are down 10 or 11 days a month, and 
that this is a matter of serious concern to a 
good many Americans. I'll have to leave it 
at that at the present time because the study 
is not complete and Td have to examine the 
legislation, other than my general comments 
on it. 

[25.] Q. Mr. President, to go back to 
the Urban Affairs Department, the Republi- 
cans say that you were playing politics last 
week when you said that you would like to 
have Mr. Robert Weaver, a distinguished 
Negro, to head that department. They also 
accuse you of injecting the race issue into 
this whole matter. Would you care to 
comment? 

THE PRESIDENT. No, I merely said in re- 
sponse to a question that it was quite obvious 
that Mr. Weaver is the very successful, able 
head of the — by far the largest division 
which would be placed in an urban depart- 
ment. It was well rumored that Mr. 
Weaver would be appointed to the Cabinet. 
In fact, it may have played some part in 
some decisions in regard to the matter, so I 
think it's much better to get it out in the 
open. Obviously, if the legislation had been 
passed, Mr. Weaver would have been ap- 
pointed. It was well known on the Hill. 
The American people might as well know it. 

[26.] Q. Mr. President, Congressman 
Alger of Texas, today criticized Mr. Salinger 
as a "young and inexperienced White House 
publicity man" — [laughter'] — and ques- 
tioned the advisability of having him visit 
the Soviet Union. I wonder if you have 
any comments. 

THE PREsmENT. I kuow there are always 
some people who feel that Americans are 
always young and inexperienced, and for- 
eigners are always able and tough and great 
negotiators. But I don't think that the 



United States would have acquired its pres- 
ent position of leadership in the free world if 
that view were correct. 

Now he also, as I saw the press, said that 
Mr. Salinger's main job was to increase my 
standing in the Gallup poll. Having done 
that, he is now moving on — [laughter] — 
to improve our communications. 

As I say, Mr. Salinger and Mr. Adzhubei 
are responsible for our interview, which I 
think was very helpful. And I think any- 
thing we can do — I don't think we should 
worry so much about Americans traveling 
abroad; I think they've acquitted themselves 
and so will Mr. Salinger. I'm sure that 
some people in the Soviet Union are con- 
cerned about Mr. Adzhubei's visits abroad. 
[Laughter] 

[27.] Q. Mr. President, with regard to 
your authority to cut taxes as an antireces- 
sion measure, a Democratic member of the 
House Ways and Means Committee said the 
other day that no such authority was neces- 
sary because a request would go through 
Congress faster than a declaration of war. 
What do you think of this and of the argu- 
ment that this power might be used for 
political reasons as well as economic? 

THE PRESIDENT. Well, as you recall, in our 
proposal we harnessed it to a statistical base 
which was charted on the recessions which 
you have had since World War II and, there- 
fore, would go off or be prepared to go off 
after we reached a certain peak of unem- 
ployment after a certain period of months. 
That is the purpose of it. So that it seemed 
to us it was a tool which would be most 
valuable. 

As you know, Arthur Burns, who was 
Chairman of the Economic Advisers under 
President Eisenhower, has endorsed this 
proposal. It's been endorsed by people on 
all sides of the spectrum. There is nothing 
more costly, nothing more expensive than 
recurrent recessions. And if we can take 
action early enough, it was felt by economists 
and businessmen, the Council — ^for example, 
the CED and others, that this would be a 
way of easing the impact. 



97 



[27] Jan. 31 



Public Papers of the Presidents 



If you can tell me anything more expensive 
than the large deficits we ran as a result of 
the '58 and '60 recessions and the unemploy- 
ment we had as a result of those recessions — 
I consider this to be soundly based. 

Now, if we cannot get it, then we will 
have to consider the action that you've sug- 
gested. But I think it would be a very im- 
portant standby tool. This economy is a 
very — it fluctuates and moves — and we don't 
want to have a recovery in '62 and a lack of 
vigor in that recovery in '63 when early 



action might maintain the economy and 
maintain employment. I hope this will be 
given a long look, even though I realize the 
Ways and Means Committee has other 
priorities. But in my judgment, in the long 
run we have a good chance to have it ac- 
cepted. 
Reporter: Thank you, Mr. President. 

note: President Kennedy's twenty-second news con- 
ference was held in the State Department Audi- 
torium at 4 o'clock on Wednesday afternoon, 
January 31, 1962. 



28 Special Message to the Congress on Public Welfare Programs. 
February i, 1962 



To the Congress of the United States: 

Few nations do more than the United 
States to assist their least fortunate citizens — 
to make certain that no child, no elderly or 
handicapped citizen, no family in any cir- 
cumstances in any State, is left without the 
essential needs for a decent and healthy 
existence. In too few nations, I might add, 
are the people aware of the progressive 
strides this country has taken in demonstrat- 
ing the humanitarian side of freedom. Our 
record is a proud one — and it sharply refutes 
those who accuse us of thinking only in the 
materialistic terms of cash registers and 
calculating machines. 

Our basic public welfare programs were 
enacted more than a quarter century ago. 
Their contribution to our national strength 
and well-being in the intervening years has 
been remarkable. 

But the times, the conditions, the prob- 
lems have changed — and the nature and 
objectives of our public assistance and child 
welfare programs must be changed, also, if 
diey are to meet our current needs. 

The impact of these changes should not be 
underestimated: 

— ^People move more often — from the farm 
to the city, from urban centers to the suburbs, 
from the East to the West, from the South 
to the North and Midwest. 

98 



— Living costs, and especially medical 
costs, have spiraled. 

— ^The pattern of our population has 
changed. There are more older people, 
more children, more young marriages, 
divorces, desertions and separations. 

— Our system of social insurance and re- 
lated programs has grown gready: in 1940 
less than 1% of the aged were receiving 
monthly old age insurance benefits; today 
over ?^rds of our aged are receiving these 
benefits. In 1940 only 21,000 children, in 
families where the breadwinner had died, 
were getting survivor insurance benefits; 
today such monthly benefits are being paid 
to about 2 million children. 

All of these changes affect the problems 
public welfare was intended to relieve as 
well as its ability to relieve it. Moreover, 
even the nature and causes of poverty have 
changed. At the time the Social Security 
Act established our present basic framework 
for public aid, the major cause of poverty 
was unemployment and economic depres- 
sion. Today, in a year of relative prosperity 
and high employment, we are more con- 
cerned about the poverty that persists in the 
midst of abundance. 

The reasons are often more social than 
economic, more often subtle than simple. 
Some are in need because they are untrained 



John F. Kennedy, 1962 



Feb. I [28] 



for work — ^somc because they cannot work, 
because they are too young or too old, blind 
or crippled. Some are in need because they 
are discriminated against for reasons they 
cannot help. Responding to their ills with 
scorn or suspicion is inconsistent with our 
moral precepts and inconsistent with their 
nearly universal preference to be independ- 
ent. But merely responding with a "relief 
check" to complicated social or personal 
problems — such as ill health, faulty educa- 
tion, domestic discord, racial discrimination, 
or inadequate skills — ^is not likely to provide 
a lasting solution. Such a check must be 
supplemented, or in some cases made un- 
necessary, by positive services and solutions, 
offering the total resources of the commimity 
to meet the total needs of the family to help 
our less fortunate citizens help themselves. 

Public welfare, in short, must be more 
than a salvage operation, picking up the 
debris from the wreckage of human lives. 
Its emphasis must be directed increasingly 
toward prevention and rehabilitation — on 
reducing not only the long-range cost in 
budgetary terms but the long-range cost in 
human terms as well. Poverty weakens in- 
dividuals and nations. Sounder public wel- 
fare policies will benefit the nation, its econ- 
omy, its morale, and, most importantly, its 
people. 

Under the various tides of the Social Secu- 
rity Act, funds are available to help the 
States provide assistance and other social 
services to the needy, aged and blind, to the 
needy disabled, and to dependent children. 
In addition, grants are available to assist the 
States to expand and strengthen their pro- 
grams of child welfare services. These pro- 
grams are essentially State programs. But 
the Federal Government, by its substantial 
financial contribution, its leadership, and the 
standards it sets, bears a major responsibility. 
To better fulfill this responsibility, the Secre- 
tary of Health, Education, and Welfare re- 
cendy introduced a number of administrative 
changes designed to get people off assistance 
and back into useful, productive roles in 
society. 



These changes provided for: 

— ^the more effective location of deserting 
parents; 

— an effort to reduce that proportion of 
persons receiving assistance through willful 
misrepresentation, although that proportion 
is only a small part of the 1.5% of persons 
on the rolls found to be ineligible; 

— ^allowing dependent children to save 
money for educational, employment or med- 
ical needs without having that amount de- 
ducted from their public assistance grants; 

— ^providing special services and safe- 
guards to children in families of unmarried 
parents, in families where the father has 
deserted, or in homes in danger of becoming 
morally or physically unsuitable; and 

— an improvement in the training of per- 
sonnel, the development of services and the 
coordination of agency efforts. 
In keeping with this new emphasis, the 
name of the Bureau of Public Assistance has 
been changed to the Bureau of Family Serv- 
ices. 

But only so much can be done by adminis- 
trative changes. New legislation is required 
if our State-operated programs are to be 
fully able to meet modern needs. 

I. PREVENTION AND REHABILITATION 

As already mentioned, we must place more 
Stress on services instead of relief. 

I recommend that the States be encour- 
aged by the offer of additional Federal funds 
to strengthen and broaden the rehabilitative 
and preventive services they o£Eer to persons 
who are dependent or who would otherwise 
become dependent. Additional Federal 
funds would induce and assist the States to 
establish or augment their rehabilitation 
services, strengthen their child welfare serv- 
ices, and add to their number of competent 
public welfare personnel. At the present 
time, the cost of these essential services is 
lumped with all administrative costs — rou- 
tine clerical and oflSce functions — ^and the 
Federal Government pays one-half of the 
total of all such costs incurred by the States. 



99 



[28] Feb. I 



Public Papers of the Presidents 



By separating out and identifying the cost 
of these essential rehabilitation, social work 
and other service costs, and paying the States 
three-fourths of such services — a step I ear- 
nestly recommend for your consideration — 
the Federal Government will enable and 
encourage the States to provide more com- 
prehensive and effective services to rehabili- 
tate those on welfare. The existing law 
should also be amended to permit the use of 
Federal funds for utilization by the State 
welfare agency of specialists from other State 
agencies who can help mount a concerted 
attack on the problems of dependency. 

There are other steps we can take which 
will have an important effect on this effort. 
One of these is to expand and improve the 
Federal-State program of vocational rehabili- 
tation for disabled, people. Among the 
92,500 disabled men and women successfully 
rehabilitated into employment through this 
program last year were about 15,000 who 
had formerly been receiving public assist- 
ance. Let me repeat this figure: 15,000 
people, formerly supported by the taxpayers 
through welfare, are now back at work as 
self-supporting taxpayers. Much more of 
this must be done — until we are restoring to 
employment every disabled person who can 
benefit from these rehabilitation services. 

The prevention of future adult poverty 
and dependency must begin with the care 
of dependent children — those who must re- 
ceive public welfare by virtue of a parent's 
death, disability, desertion or unemploy- 
ment. Our society not only refuses to leave 
such children hungry, cold, and devoid of 
opportunity — we are insistent that such chil- 
dren not be community liabilities through- 
out their lives. Yet children who grow up 
in deprivation, without adequate protection, 
may be poorly equipped to meet adult 
responsibilities. 

The Congress last year approved, on a 
temporary basis, aid for the dependent chil- 
dren of the unemployed as a part of the 
permanent Aid to Dependent Children pro- 
gram. This legislation also included tem- 
porary provisions for foster care where the 



child has been removed from his home, and 
an increase in Federal financial assistance 
to the aged, blind and disabled. The need 
for these temporary improvements has not 
abated, and their merit is clear. I recom- 
mend that these temporary provisions be 
made permanent. 

But children need more than aid when 
they are destitute. We need to improve our 
preventive and protective services for chil- 
dren as well as adults. I recommend that the 
present ceiling of $25,000,000 authorized for 
annual appropriations for grants to the States 
for child welfare services be gradually raised, 
beginning with $30,000,000 for 1963, up to 
$50,000,000 for the fiscal year ending 
June 30, 1969, and succeeding years. 

Finally, many women now on assistance 
rolls could obtain jobs and become self- 
supporting if local day care programs for 
their young children were available. The 
need for such programs for the children of 
working mothers has been increasing rap- 
idly. Of the 22 million women now work- 
ing, about 3 million have children under 6, 
and another 4^ million have school-age chil- 
dren between 6 and 17. Adequate care for 
these children during their most formative 
years is essential to their proper growth and 
training. Therefore, I recommend that the 
child welfare provisions of the Social Secu- 
rity Act be changed to authorize earmarking 
up to $5,000,000 of grants to the States in 
1963 and $10,000,000 a year thereafter for aid 
in establishing local programs for the day 
care of young children of working mothers. 

II. PROMOTING NEW SKILLS AND INDEPENDENCE 

We must find ways of returning far more 
of our dependent people to independence. 
We must find ways of returning them to a 
participating and productive role in the 
community. 

One sure way is by providing the oppor- 
tunity every American cherishes to do sound 
and useful work. For this reason, I am 
recommending a change in the law to permit 
States to maintain with Federal financial 



100 



John F. Kennedy, 7962 



Feb. I [28] 



help community work and training projects 
for unemployed people receiving welfare 
payments. Under such a program, unem- 
ployed people on welfare would be helped to 
retain their work skills or learn new ones; 
and the local community would obtain addi- 
tional manpower on public projects. 

But earning one's welfare payment 
through required participation in a com- 
munity work or training project must be an 
opportunity for the individual on welfare, 
not a penalty. Federal financial participa- 
tion will be conditioned upon proof that the 
work will serve a useful community or public 
purpose, will not displace regular employees, 
will not impair prevailing wages and work- 
ing conditions, and will be accompanied by 
certain basic health and safety protections. 
Provisions must also be made to assure ap- 
propriate arrangements for the care and pro- 
tection of children during the absence from 
home of any parent performing work or 
undergoing training. 

Moreover, systematic encouragement 
would be given all welfare recipients to ob- 
tain vocational counseling, testing, and place- 
ment services from the United States Em- 
ployment Service and to secure useful train- 
ing wherever new job skills would be helpful. 
Close cooperative arrangements would be 
established with existing training and voca- 
tional education programs, and with the 
vocational and on-the-job training oppor- 
tunities to be created under the Manpower 
Development and Training and Youth Em- 
ployment Opportunities programs previously 
proposed. 

III. MORE SKILLED PERSONNEL 

It is essential that state and local welfare 
agencies be staffed with enough qualified 
personnel to insure constructive and ade- 
quate attention to the problems of needy 
individuals — to take the time to help them 
find and hold a job — ^to prevent public de- 
pendency and to strive, where that is not 
possible, for rehabilitation — and to ascertain 
promptly whether any individual is receiving 



aid for which he does not qualify, so that aid 
can be prompdy withdrawn. 

Unfortunately, there is an acute short- 
age of trained personnel in all our welfare 
programs. The lack of experienced social 
workers for programs dealing with children 
and their families is especially critical. 

At the present time, when States expend 
funds for the training of personnel for the 
administration of these programs, they re- 
ceive Federal grants on a doUar-for-doUar 
basis. This arrangement has failed to pro- 
duce a sufficient number of trained staff, 
especially social workers. I recommend, 
therefore, that Federal assistance to the 
States for training additional welfare person- 
nel be increased; and that in addition, the 
Secretary of Health, Education, and Welfare 
be authorized to make special arrangements 
for the training of family welfare personnel 
to work with those children whose parents 
have deserted, whose parents are unmarried, 
or who have other serious problems. 



IV. FITTING GENERAL CONDITIONS OR 
SAFEGUARDS TO INDIVIDUAL NEEDS 

In order to make certain that welfare 
funds go only to needy people, the Social 
Security Act requires the States to take all 
income and resources of the applicant into 
consideration in determining need. Al- 
though Federal law permits, it does not re- 
quire States to take into full account the full 
expenses individuals have in earning income. 
This is not consistent with equity, common 
sense or other Federal laws such as our tax 
code. It only discourages the will to earn. 
In order to encourage assistance recipients 
to find and retain employment, I therefore 
recommend that the Act be amended to re- 
quire the States to take into account the ex- 
penses of earning income. 

Among relatives caring for dependent 
children are a few who do not properly han- 
dle their assistance payments — some to the 
extent that the well-being of the child is 
adversely affected. Where the State deter- 
mines that a relative's ability to manage 



lOI 



[28] Feb. I 



Public Papers of the Presidents 



money is contrary to the welfare of the child, 
Federal law presendy requires payments to 
be made to a legal guardian or representa- 
tive, if Federal funds are to be used. But 
this general requirement may sometimes 
block progress in particular situations. In 
order to recognize the necessity for each 
State to make exceptions to this rule in a very 
limited number of cases, I recommend that 
the law be amended to permit Federal shar- 
ing to continue even though protective pay- 
ments in behalf of children — not to exceed 
}4 of 1% of ADC recipients in each State — 
are made to other persons concerned with 
the welfare of the family. The States would 
be required to reexamine these exceptions at 
intervals to determine whether a more per- 
manent arrangement such as guardianship 
is required. 

When first enacted, the aid to dependent 
children program provided for Federal shar- 
ing in assistance payments only to the child. 
Since 1950, there has been Federal sharing 
in any assistance given to one adult in the 
household as well as to the child or children. 
Inasmuch as under current law there may be 
two parents in homes covered by this pro- 
gram, one incapacitated or unemployed, I 
recommend in the interest of equity the 
extension of Federal sharing in assistance 
payments both to the needy relative and to 
his or her spouse when both are living in the 
home with the child. 

V. MORE EFFICIENT ADMINISTRATION 

Under present public assistance provisions. 
States may impose residence requirements up 
to five of the last nine years for the aged, 
blind and disabled. Increased mobility, as 
previously mentioned, is a hallmark of our 
times. It should not operate unfairly on 
either an individual State or an individual 
family. I recommend that the Social Secu- 
rity Act be amended so as to provide that 
States receiving Federal funds not exclude 
any otherwise eligible persons who have been 
residents of the State for one year immedi- 



ately preceding their application for assist- 
ance. I also recommend that the law be 
amended to provide a small increase in 
assistance funds to those States which sim- 
plify their laws by removing all residence 
requirements in any of their Federally aided 
programs. 

In view of the changing nature of the 
economic and social problems of the country, 
the desirability of a periodic review of our 
public welfare programs is obvious. For 
that purpose I propose that the Secretary of 
Health, Education, and Welfare be author- 
ized to appoint an Advisory Council on 
Public Welfare representing broad com- 
munity interests and concerns, and such 
other advisory committees as he deems nec- 
essary to advise and consult with him in the 
administration of the Social Security Act. 

No study of the public welfare program 
can fail to note the difficulty of the problems 
faced or the need to be imaginative in dealing 
with them. Accordingly, I recommend that 
amendments be made to encourage experi- 
mental, pilot or demonstration projects that 
would promote the objectives of the assist- 
ance tides and help make our welfare pro- 
grams more flexible and adaptable to local 
needs. 

The simplification and coordination of 
administration and operation would gready 
improve the adequacy and consistency of 
assistance and related services. As a step in 
that direction, I recommend that a new tide 
to the Social Security Act be enacted which 
would give to States the option of submitting 
a single, unified State plan combining their 
assistance programs for aged, blind and dis- 
abled, and their medical assistance programs 
for the aged, granting to such States addi- 
tional Federal matching for medical pay- 
ments on behalf of the blind and disabled. 



These proposed far-reaching changes — 
aimed at far-reaching problems — are in the 
public interest and in keeping with our 
finest traditions. The goals of our public 



102 



John F. Kennedy, 1962 



Feb. I [29] 



welfare programs must be positive and con- 
structive — to create economic and social op- 
portunities for the less fortunate — ^to help 
them find productive, happy and independ- 
ent lives. It must stress the integrity and 
preservation of the family imit. It must 
contribute to the attack on dependency, 
juvenile delinquency, family breakdown, 
illegitimacy, ill health and disability. It 
must reduce the incidence of these problems, 
prevent their occurrence and recurrence, and 
strengthen and protect the vulnerable in a 
highly competitive world. 

Unless such problems are dealt with effec- 
tively, they fester, and grow, sapping the 
strength of society as a whole and extending 
their consequences in troubled families from 
one generation to the next. 

The steps I recommend to you today to 
alleviate these problems will not come 
cheaply. They will cost more money when 
first enacted. But they will restore human 
dignity; and in the long run, they will save 
money. I have recommended in the Budget 



submitted for fiscal year 1963 sufficient funds 
to cover the extension of existing programs 
and the new legislation here proposed. 

Communities which have — ^for whatever 
motives — ^attempted to save money through 
ruthless and arbitrary cutbacks in their wel- 
fare rolls have found their efforts to litde 
avail. The root problems remained. 

But communities which have tried the 
rehabilitative road — ^the road I have recom- 
mended today — ^have demonstrated what can 
be done with creative, thoughtfully con- 
ceived, and properly managed programs of 
prevention and social rehabilitation. In 
those communities, families have been re- 
stored to self-reliance, and relief rolls have 
been reduced. 

To strengthen our human resources — ^to 
demonstrate the compassion of free men — 
and in the light of our own constructive self- 
interest — ^we must bring our welfare pro- 
grams up to date. I urge that the Congress 
do so without delay. 

John F. Kennedy 



29 Message to the Congress Transmitting First Annual Report of 
the U.S. Arms Control and Disarmament Agency. 
February i, 1962 



To the Congress of the United States: 

I have the honor to transmit the first 
annual report of the United States Arms 
Control and Disarmament Agency. 

The Agency was established by the Act 
of September 26, 1961, and has thus been 
in existence for only four months. This 
report, submitted pursuant to law, describes 
not only its own initial activities, but also 
the work of predecessor agencies which it 
is continuing. 

The existence of this new Agency is a 
source of strength to me, in the performance 
of my responsibility to pursue a new type of 
world security which will increase our own 
prospects of living in peace and freedom. 
I know that this goal is the desire of the 



Congress and the American people to leave 
no stone unturned in their search for a 
peaceful world. 

This report of activities indicates that the 
new Agency is moving surely toward the 
achievement of greater effectiveness and flex- 
ibility in disarmament negotiations. The 
development of this kind of skill and re- 
sponsibility is essential to the serious pur- 
suit of security through disarmament 

On March 14, our representatives will 
meet with the representatives of 17 other 
nations in a forum established by resolution 
of the United Nations General Assembly to 
seek to negotiate a comprehensive disarma- 
ment treaty program. When I appeared 
before the United Nations last September, 



103 



[29] Feb. I 



Public Papers of the Presidents 



I submitted a program for general and com- 
plete disarmament in a peaceful world. It is 
my hope and expectation that the forth- 
coming conference will make significant 
progress toward the achievement of the goal 
of disarmament with effective methods of 
insuring compliance. 

Never before in the history of man has 
the importance of arms control and dis- 



armament been so great. For this reason, 
I urge your support of this Agency in the 
great and difficult tasks which it will face in 
the future. 

John F. Kennedy 

note: The report is printed in House Document 326 
(87th Cong., 2d sess.). 



30 Remarks of Welcome to the Members of the U.S. Delegation 
Upon Their Return From the Punta del Este Conference. 
February i, 1962 



ON BEHALF of all the people of this 
country, we want to express our great 
pleasure in extending a very warm wel- 
come on a cold day to the Secretary of §tate 
and to the entire delegation — the Members 
of the Congress from the House and Senate 
of both parties, who together represented our 
country during some most important days. 
All of us have the greatest pride and satis- 
faction in their work. 

I believe that the delegation was most 
ably led by the Secretary of State who I 
think under the conditions which repre- 
sented intensive negotiations for a long 
period of time in attempting to reconcile 
and maintain and strengthen the Organiza- 
tion of American States, in which we all 
believe — I believe that he did himself great 
credit and he did his country credit. And I 
want to express our thanks to him and to the 



Members of the Congress who accompanied 
him, who represented us all. 

We believe strongly in the American sys- 
tem, and my strong conviction is that as a 
result of this meeting and as a result of the 
efforts of the delegation, this system has been 
strengthened — and I think communism has 
been isolated in this hemisphere. And I 
think the hemisphere can move on towards 
progress. 

So, Mr. Secretary, and Members of the 
Congress, we thank you and welcome you 
home with great appreciation. 

note: The President spoke in the Rose Garden at 
the White House. 

Secretary Rusk was accompanied to the confer- 
ence by Senator Wayne Morse of Oregon, Senator 
Bourke Hickenlooper of Iowa, Representative Ar- 
mistead I. Selden, Jr., of Alabama, and Representa- 
tive Chester E. Merrow of New Hampshire. 



31 Letter to the President of the Senate and to the Speaker of the 
House Transmitting Bill To Authorize U.S. Loans to the 

International Monetary Fund. February 1^ 1962 

> 

lating to "special borrowing arrangements 
of the International Monetary Fund." A 
copy of the report of the Council is attached. 
The legislation takes the form of an 
amendment to the Bretton Woods Agree- 
ments Act and authorizes the United States 



Dear Mr, : 

Transmitted herewith for the considera- 
tion of the Congress is legislation which 
would implement the recommendations of 
the National Advisory Council on Interna- 
tional Monetary and Financial Problems re- 



104 



]ohn F. Kennedy, 7962 



Feb. 2 [31] 



to participate in loans to the International 
Monetary Fund in order to strengthen the 
international monetary system. 

The International Monetary Fund has 
been a vital force for economic stability in 
the free world ever since it v^as formed in 
1946. Its transactions have supported the 
currencies of free v^orld nations w^hich en- 
countered balance of payments or other 
monetary difficulties, and it helped maintain 
confidence in the currencies of its niembers. 
The leadership of the United States in the 
establishment and support of the Fund has 
been a source of pride and satisfaction. 

In my message of last February 6, I dis- 
cussed the imbalance in our international 
payments and called for a series of related 
measures to correct it. A number of these 
measures have been adopted. But the prob- 
lem is stubborn and complex and v^ill re- 
quire additional action over a number of 
years. 

Meanw^hile, v^e can strengthen the mone- 
tary system in general and the position of the 
United States in that system by augmenting 
the resources and flexibility of the Interna- 
tional Monetary Fund to permit the Fund to 
be utilized more effectively in supporting a 
healthy and growing world economy. 

To accomplish this purpose, intensive 
negotiations have gone forward, with the 
active participation of the Fund, among the 
major industrial nations of the free world. 
These negotiations culminated in the pro- 
posals described and recommended in the 
National Advisory Council's report calling 
for the addition of $6 billion to the resources 
of the Fund. This addition would strongly 
reinforce the international monetary system 
of the free world. 

It would, in particular, greatly enhance 
the ability of the Fund to assist the United 
States in coping with its international pay- 
ments problems. Today, the Fund has on 
hand only $1.6 billion of the currencies of 
other major industrial countries — exclusive 
of the United Kingdom, which has itself 
made a large drawing from the Fund — to 



meet a possible need for a drawing by the 
United States. The new arrangements 
would permit an additional $3 billion in- 
crease in available resources of these other 
major currencies, and would thus assure the 
Fund the assets needed to meet a request for 
a drawing by the United States should such 
a request ever be necessary. At a time when 
the confidence in the dollar is of utmost im- 
portance to the free world, the $6 billion 
addition to the Fund will be especially sig- 
nificant. It will greatly enhance our own 
financial resources and greatly reduce any 
possibility of a serious drain upon dollar 
balances. The very existence of the new 
standby credits will be an assurance of sta- 
bility of major currencies. 

The new borrowing arrangements would 
require amendment of the Bretton Woods 
Agreements Act by authorizing the United 
States to lend up to $2 billion to the Fund. 
The other nine participants in the arrange- 
ment would commit themselves to provide 
up to $4 billion. The commitment of nearly 
$2.5 billion by members of the European 
Common Market — Belgium, France, Ger- 
many, Italy, and the Netherlands — would 
represent an amount about equal to the pres- 
ent aggregate of their Fund quotas. By con- 
trast the United States and the United King- 
dom would provide amounts equal to only 
about half their present quotas. The 
United States would not be expected to lend 
to the Fund in the absence of a substantial 
improvement in its balance of payments 
position. 

The new proposals would strengthen the 
position of the dollar as the world's major 
reserve currency. They would also provide 
new armament for the defense of the cur- 
rencies of the free world and for reinforc- 
ing the entire international monetary system. 
I urge, therefore, that the Congress promptly 
consider this legislation. Participation by 
the United States in the proposed arrange- 
ments is in the national interest. 
Sincerely, 

John F. Kennedy 



715-405 0—64- 



-11 



105 



[31] Feb. 2 



Public Papers of the Presidents 



note: This is the text of identical letters addressed to 
the Honorable Lyndon B. Johnsqn, President of the 
Senate, and to the Honorable John W. McCormack, 
Speaker of the House of Representatives. 

The report of the National Advisory Council 
on International Monetary and Financial Problems, 
dated January 1962, is published as a committee 



print (24 pp.) of the House Committee on Bank- 
ing and Currency (Government Printing OflSce, 
1962). 

The amendment to the Bretton Woods Agree- 
ments Act (Public Law 87-490, 76 Stat. 105) was 
approved on June 19, 1962. 



32 White House Statement Concerning the Embargo on Trade 
With Cuba. February 3, 1962 



THE PRESIDENT announced today an 
embargo upon trade between the United 
States and Cuba. He said that on humani- 
tarian grounds exports of certain foodstuffs, 
medicines, and medical supplies from the 
United States to Cuba would be excepted 
from this embargo. 

The President acted under the authority 
of section 620(a) of the Foreign Assistance 
Act of 1961. He stated in his proclamation 
that the embargo was being imposed in ac- 
cordance with the decisions of the recent 
Meeting of Foreign Ministers of the Inter- 



American System at Punta del Este, 
Uruguay. 

The President pointed out that the em- 
bargo will deprive the Government of Cuba 
of the dollar exchange it has been deriving 
from sales of its products in the United 
States. The loss of this income will reduce 
the capacity of the Castro regime, intimately 
linked with the Sino-Soviet bloc, to engage 
in acts of aggression, subversion, or other 
activities endangering the security of the 
United States and other nations of the 
hemisphere. 



33 Statement by the President Upon Approving Bill Relating to 
Distribution of General Motors Shares. February 3, 1962 



I HAVE approved H.R. 8847, entided "An 
Act to amend the Internal Revenue Code of 
1954 so as to provide that a distribution of 
stock made to an individual (or certain 
corporations) pursuant to an order enforc- 
ing the antitrust laws shall not be treated 
as a dividend distribution but shall be 
treated as a return of capital; and to provide 
that the amount of such a distribution made 
to a corporation shall be the fair market 
value of the distribution." 

H.R. 8847 adds several new provisions to 
the Internal Revenue Code of 1954 which 
are designed to affect the income tax treat- 
ment of certain taxpayers who may receive 
a distribution of General Motors stock pur- 
suant to a court order requiring E. I. du 
Pont de Nemours and Company (and, pos- 
sibly, Christiana Securities Corporation) to 
divest itself (or themselves) of such stock 



pursuant to the du Pont antitrust case 
{United States v. E, L du Pont de Nemours 
and Co,, et al, 365 U.S. 806 (1961)). The 
bill applies only if the court orders the dis- 
tribution to be completed within three years 
or less from the date the court order becomes 
final. 

In general, the bill provides that the re- 
ceipt of General Motors stock pursuant to 
a court order in the du Pont antitrust case 
by individual shareholders (or any share- 
holder which is not entitled to the corporate 
dividends received deduction) will be 
treated as a return of capital, and its fair 
market value will reduce the basis of the 
stock with respect to which the distribution 
is made. In those instances where the fair 
market value of the General Motors stock 
exceeds the basis of the stock with respect 
to which the distribution is made, such ex- 



106 



John F. Kennedy, 7962 



Feb. 3 [33] 



cess will be taxed as capital gain. If this 
bill were not enacted, such individual share- 
holders would be required to pay an ordi- 
nary income tax on the full fair market 
value of the General Motors stock received. 

With the exception of Christiana Secu- 
rities Corporation, the bill does not alter the 
tax treatment of those corporations which, 
as stockholders, may receive a distribution 
of General Motors stock pursuant to court 
order. Under existing law these corporate 
stockholders will be required to pay a tax 
at ordinary income rates measured by the 
basis of the stock to the distributing corpora- 
tion {i.e,, basis of General Motors stock to 
E. I. du Pont de Nemours and Company or 
Christiana Securities Corporation immedi- 
ately prior to the distribution) less the 85 
percent intercorporate dividends received 
deduction. 

The bill will impose on Christiana Secu- 
rities Corporation a higher income tax than 
will be imposed, under existing law, upon 
other corporate shareholders to which Gen- 
eral Motors stock may be distributed. 
Christiana has made it clear to the Treasury 
Department and the Congress, however, 
that the benefits to it and to its stockholders 
from the entire legislation justify this tax. 

At the same time this legislation was 
before the Congress, the United States Dis- 
trict Court for the Northern District of 
Illinois had before it the litigation to deter- 
^mine what method of distribution of the 
General Motors stock should be adopted in 
order to carry out the Supreme Court deci- 
sion. No final divestiture decree has yet 
been rendered. The Department of Justice 
is urging the District Judge to require 
Christiana to sell the General Motors stock 
which it would receive as a stockholder of 
du Pont so that the stock would not pass- 
through to Christiana stockholders. If the 



pass-through occurred, a large percentage of 
General Motors stock would be acquired by 
members of the du Pont family. This, it 
is argued, would mean that the du Pont 
family would still effectively control both 
du Pont and General Motors. 

This legislation clearly does not attempt 
to express a judgment upon the question that 
is now before the court. The Senate 
Finance Committee report pointed out that 
all issues dealing with the manner of dives- 
titure should be determined judiciously, 
solely with reference to antitrust principles, 
and without regard to the provisions of the 
bill before it. The debate discloses a unan- 
imity of intent on this point. Both the pro- 
ponents and the opponents of the bill agreed 
that the antitrust questions, particularly the 
question whether the pass-through of stock 
to Christiana stockholders should be per- 
mitted, should not be affected in any way by 
the legislation. 

In view of this unequivocal construction 
of the legislation, I am approving it. It 
should be clearly understood that neither 
the Congress nor I have approved a divesti- 
ture which will permit the stock of General 
Motors to pass-through Christiana to the 
stockholders of Christiana. The tax impact 
upon stockholders of du Pont who may 
receive General Motors stock in the divesti- 
ture decree by the District Judge will be 
affected. However, the court should not be 
influenced in its determination as to what 
relief is appropriate to carry out the decision 
of the Supreme Court, and the Department 
of Justice should not be prejudiced in any 
way in its effort to enforce the antitrust 
decision of the Supreme Court by this 
legislation. 

note: As enacted, H.R. 8847 is Public Law 87- 
403 (76 Stat. 4). 



107 



[34] Feb. 5 



Public Papers of the Presidents 



34 Recorded Message to the People of Viet-Nam on the Occasion of 
Their New Year's Celebration. February 5, 1962 



ON THE OCCASION of your New Year's 
celebration, my fellow Americans and I 
extend our very best wishes for the pros- 
perity and well-being of the government and 
the people of Viet-Nam. 

In your struggle against the aggressive 
forces of communism, the sacrifices that you 
have willingly made, the courage you have 
shown, the burdens you have endured have 
been a source of inspiration to people all 
over the world. 

Let me assure you of our continued assist- 
ance in the development of your capabilities 



to maintain your freedom and to defeat those 
who wish to destroy that freedom. 

We in America sincerely hope that the 
year of the Tiger will see peace come again 
to Viet-Nam. We know that courage and 
dedication to peace and freedom will pre- 
vail — and that prospects for Viet-Nam will 
brighten during the coming year. 

And we look forward confidently with 
you to the day when your country will again 
be at peace — united, prosperous, and free. 

note: The message was recorded on film and tape 
for transmission through the Voice of America. 



35 Toasts of the President and Prime Minister Adoula of the 
RepubUc of the Congo. February 5, 1962 



Gentlemen: 

I am sure you all join me in welcoming 
to this country the guest of honor and the 
members of his government. I don't think 
that any head of state of a new country has 
faced the difficulties and the challenges 
which have pressed upon him with so much 
force in the last few months. 

The difficulties of our revolutionary ex- 
perience, and the experiences of every other 
people coming into independence since the 
end of World War II, pale in comparison to 
the problems which the Congo has faced and 
which press upon the Prime Minister and his 
supporters. 

What makes him especially welcome is 
the courage and the fortitude, the persistence 
and the judgment with which he has met 
these challenges — which would have over- 
whelmed a lesser people, a lesser country, a 
lesser man, a lesser government. 

Prime Minister, we welcome you here for 
many reasons. The success of the Congo is 
tied up, really, we believe, with the success of 
the United Nations. If you fail, and the 
Congo should fail, it would be a serious blow 



for the United Nations, upon which this 
country has placed so many hopes for the 
last 17 years. And because of the intimate 
association between the United Nations and 
your government, we are particularly glad 
that you are here to address them. 

We are also glad to welcome you because 
of your own qualities, because you have set 
a course for your nation, of being independ- 
ent, of being African, of being free, of being 
unaligned, of governing under most adverse 
conditions, through parliamentary democ- 
racy, at a time when some other new nations 
have been forced by events to move away 
from democratic processes. 

We welcome you because of your own 
extraordinary record — rising because of your 
own efforts to a position of preeminence, 
where you have won the support of people, 
both within and without your country — and 
because of your own personal qualities. 

We are vitally interested in the success of 
the Congo because we believe the success 
of your country is essential to the success of 
a free Africa. We believe strongly in the 
unity of free states, able to choose their own 



108 



John F. Kennedy, 7962 



Feb. 6 [36] 



destiny and able to decide their own fate. 

So, Prime Minister, we welcome you here. 
Many years ago, one of our distinguished 
Presidents — you examined his portrait this 
morning in President Lincoln's bedroom — 
Andrew Jackson, said, "Our Federal Union, 
it must be preserved." 

We recognize your strong conviction that 
the same policy should follow for your own 
country, that the Congo must be preserved. 
And as a faithful member of the United 
Nations, we support — through the United 
Nations — the implementation of that policy. 

So we welcome you here, and I hope that 
all of you will join me in saluting the 
people of the Congo, the country, and its 
distinguished Prime Minister. 

note: The President proposed the toast at a luncheon 
in the State Dining Room at the White House. 

In his response (through an interpreter) Prime 
Minister Adoula admitted that the Congo had gone 
through a period o£ grave difficuhies. He added 
that there were people in the Congo, men of good 
will, v/ho had decided to fight to surmount and 
overcome those difficulties. 

"However, I must say, Mr. President," the Prime 
Minister continued, "that there is one thing which 



you have left out of your speech, and this is that 
all those efforts of the people of the Congo, all the 
efforts of the government, of parliament, of the 
population itself, would not have availed very much 
if we had been left to ourselves. 

"Fortunately for us, we have found in the world 
people of great understanding, people of great 
friendship. We have found countries which have 
helped us, and which have helped us continuously — 
without ulterior motivation. This help has enabled 
us to try. . . . 

"This help, Mr. President, has come primarily 
from you, from your government, from your coun- 
try, through the United Nations organization. This 
is a help which you have given us by helping the 
United Nations from its very beginnings — by helping 
the United Nations to carry out the directives of the 
Security Council and of the General Assembly's 
directives, which you have helped to forge. . . . 

"So all I can say at this moment, Mr. President, is 
that in the name of our people first of all, in the 
name of our government, in the name of our chief 
of state, we say thank you to the United States. 

"We say thank you for a help which has been 
efficacious, spontaneous, and sincere. We thank your 
administration for it, Mr. President, because we are 
quite sure, as I repeat it, that our efforts would 
have been to no avail if it had not been for the 
moral and material help which we have received 
from you. . . ." 



^,6 Remarks at the Presentation to the White House of President 
Wilson's Typewriter. February 6, 1962 



LAST FALL I received a letter from Mr. 
David Lavv^rence v/ho informed me that 
President Wilson's typewriter was at the 
American Red Cross, and because of our 
interest in attempting to acquire things 
which were associated with our Presidents 
he thought that we should — suggested that 
we might get in touch with the Red Cross 
and see if they would be willing to turn it 
back to the White House. 

I called General Gruenther and he in- 
formed me that the typewriter belonged to 
the Grayson family. This typewriter had 
been Government issue. I think it was in 
the White House during President Wilson's 
administration, and it was sold, I understand 
from Professor Link, during the Harding 



administration as surplus. And it came into 
the possession of Admiral Grayson, who had 
been associated with President Wilson, and 
has continued to be a valuable possession of 
the Grayson family. 

The Grayson family were very generous 
enough to agree to have it come to the White 
House, and we are most indebted to them, 
because we know what a valuable source of 
satisfaction it was to them because of the 
association with their father. 

So we are very appreciative to them and 
we are very glad to have this come to the 
White House. It was on this typewriter that 
he typed his Fourteen Points and other mes- 
sages. We are going to put it on exhibit here 
in the White House so that the million 



109 



[36] Feb. 6 



Public Papers of the Presidents 



people who come every year can see it, 
because it reminds us of a distinguished 
President and of the distinguished role he 
played in the life of our country. 

So we thank you all — ^members of the fam- 
ily — General Gruenther — ^the Red Cross — 
Mr. Lawrence, for reminding us of this — 
Professor Link, for his valuable works on the 
life of President Wilson. And this is a — 
my wife has collected everything and this is 



my — [laughter] — ^this is the only thing I 
have produced, with their help. 

note: The President spoke at lo a.m. in his ofi&ce 
at the White House. The ceremony was attended 
by David Lawrence, journalist and publisher; Gen. 
Alfred M. Gruenther, President of The American 
Red Cross; Arthur S. Link, professor of history at 
Princeton University and editor of the Wilson papers; 
and members of the family of the late Adm. Gary 
T. Grayson, President Wilson's physician. 



37 Special Message to the Congress on Education. 
February 6, 1962 



To the Congress of the United States: 

No task before our Nation is more im- 
portant than expanding and improving the 
educational opportunities of all our people. 
The concept that every American deserves 
the opportunity to attain the highest level of 
education of which he is capable is not new 
to this Administration — ^it is a traditional 
ideal of democracy. But it is time that we 
moved toward the fulfillment of this ideal 
with more vigor and less delay. 

For education is both the foundation and 
the unifying force of our democratic way 
of life — it is the mainspring of our economic 
and social progress — it is the highest expres- 
sion of achievement in our society, ennobling 
and enriching human life. In short, it is 
at the same time the most profitable invest- 
ment society can make and the richest re- 
ward it can confer. 

Today, more than at any other time in 
our history, we need to develop our intel- 
lectual resources to the fullest. But the facts 
of the matter are that many thousands of our 
young people are not educated to their maxi- 
mum capacity — and they are not, therefore, 
making the maximum contribution of which 
they are capable to themselves, their families, 
their communities and the Nation. Their 
talents lie wasted — their lives are frequendy 
pale and blighted — and their contribution to 
our economy and culture are lamentably be- 
low the levels of their potential skills, 



knowledge and creative ability. Educational 
failures breed delinquency, despair and de- 
pendence. They increase the costs of unem- 
ployment and public welfare. They cut our 
potential national economic output by bil- 
lions. They deny the benefits of our society 
to large segments of our people. They un- 
dermine our capability as a Nation to dis- 
charge world obligations. All this we 
cannot afford — better schools we can afford. 

To be sure, Americans are still the best- 
educated and best-trained people in the 
world. But our educational system has 
failed to keep pace with the problems and 
needs of our complex technological society. 
Too many are illiterate or untrained, and 
thus either unemployed or underemployed. 
Too many receive an education diminished 
in quality in thousands of districts which 
cannot or do not support modern and ade- 
quate facilities, well-paid and well-trained 
teachers, or even a sufficiently long school 
year. 

Too many — an estimated one million a 
year — leave school before completing high 
school — ^the bare minimum for a fair start 
in modern-day life. Too many high school 
graduates with talent — numbering in the 
hundreds of thousands — ^fail to go on to col- 
lege; and 40 percent of those who enter col- 
lege drop out before graduation. And too 
few, finally, are going on to the graduate 
studies that modern society requires in in- 



IIO 



John F. Kennedy, 7962 



Feb. 6 [37] 



creasing number. The total number of 
graduates receiving doctorate degrees has in- 
creased only about one-third in ten years; in 
i960 they numbered less than ten thousand, 
including only three thousand in mathe- 
matics, physical sciences and engineering. 

An educational system which is inade- 
quate today will be worse tomorrow, unless 
we act now to improve it. We must pro- 
vide facilities for fourteen million more 
elementary, secondary school and college 
students by 1970, an increase of 30 percent. 
College enrollments alone will nearly double, 
requiring approximately twice as many 
facilities to serve nearly 7 million students 
by 1970. We must find the means of financ- 
ing a 75 percent increase in the total cost of 
education — another $20 billion a year for ex- 
pansion and improvement — ^particularly in 
facilities and instruction which must be of 
the highest quality if our nation is to achieve 
its highest goals. 



THE ROLE OF THE FEDERAL GOVERNMENT 

The control and operation of education in 
America must remain the responsibility of 
State and local governments and private in- 
stitutions. This tradition assures our edu- 
cational system of the freedom, the diversity 
and the vitality necessary to serve our free 
society fully. But the Congress has long 
recognized the responsibility of the nation 
as a whole — that additional resources, 
meaningful encouragement and vigorous 
leadership must be added to the total effort 
by the Federal Government if we are to meet 
the task before us. For education in this 
country is the right — ^the necessity — ^and the 
responsibility— of all. Its advancement is 
essential to national objectives and depend- 
ent on the greater financial resources 
available at the national level. 

Let us put to rest the unfounded fears that 
"Federal money means Federal control." 
From The Northwest Ordinance of 1787, 
originally conceived by Thomas Jefferson, 
through the Morrill Act of 1862, establishing 



the still-important and still-independent 
Land-Grant College system, to the National 
Defense Education Act of 1958, the Con- 
gress has repeatedly recognized its responsi- 
bility to strengthen our educational system 
without weakening local responsibility. 
Since the end of the Korean War, Federal 
funds for constructing and operating schools 
in districts affected by Federal installations 
have gone directly to over 5,500 districts 
without any sign or complaint of interfer- 
ence or dictation from Washington. In the 
last decade, over $5 billion of Federal funds 
have been channeled to aid higher educa- 
tion without in any way undermining local 
administration. 

While the coordination of existing Federal 
programs must be improved, we cannot 
meanwhile defer action on meeting our cur- 
rent pressing needs. Every year of further 
delay means a further loss of the opportunity 
for quality instruction to students who will 
never get that opportunity back. I therefore 
renew my urgent request of last year to the 
Congress for early action on those measures 
necessary to help this nation achieve the twin 
goals of education: a new standard of edu- 
cational excellence — and the availaiblity of 
such excellence to all who are willing and 
able to pursue it. 



I. ASSISTANCE TO ELEMENTARY AND SECONDARY 
EDUCATION 

Elementary and secondary schools are the 
foundation of our educational system. 
There is little value in our efforts to broaden 
and improve our higher education, or in- 
crease our supply of such skills as science and 
engineering, without a greater effort for ex- 
cellence at this basic level of education. 
With our mobile population and demanding 
needs, this is not a matter of local or State 
action alone — ^this is a national concern. 

Since my Message on Education of last 
year, our crucial needs at this level have in- 
tensified and our deficiencies have grown 
more critical. We cannot afford to lose an- 



III 



[37] Feb. 6 



Public Papers of the Presidents 



other year in mounting a national effort to 
eliminate the shortage of classrooms, to make 
teachers' salaries competitive, and to lift the 
quality of instruction. 

Classrooms 

To meet current needs and accommodate 
increasing enrollments — increasing by nearly 
one million elementary and secondary pupils 
a year in the 1960's — and to provide every 
child with the opportunity to receive a full- 
day education in an adequate classroom, a 
total of 600,000 classrooms must be con- 
structed during this decade. The States re- 
port an immediate shortage today of more 
than 127,000 classrooms and a rate of con- 
struction which, combined with heavily in- 
creasing enrollments, is not likely to fill their 
needs for ten years. Already over half a 
million pupils are in curtailed or half-day 
sessions. Unless the present rate of construc- 
tion is accelerated and Federal resources 
made available to supplement state and local 
resources that are already strained in many 
areas few families and communities in the 
Nation will be free from the ill effects of 
overcrowded or inadequate facilities in our 
public schools. 

Teachers' Salaries 

Teachers' salaries, though improving, are 
still not high enough to attract and retain in 
this demanding profession all the capable 
teachers we need. We entrust to our teach- 
ers our most valuable possession — our chil- 
dren — for a very large share of their waking 
hours during the most formative years of 
their life. We make certain that those to 
whom we entrust our financial assets are 
individuals of the highest competence and 
character — we dare not do less for the trust- 
ees of our children's minds. 

Yet in no other sector of our national 
economy do we find such a glaring discrep- 
ancy between the importance of one's work 
to society and the financial reward society 
offers. Can any able and industrious stu- 
dent, unless unusually motivated, be ex- 
pected to elect a career that pays more poorly 



than almost any other craft, trade, or pro- 
fession? Until this situation can be dra- 
matically improved — unless the States and 
localities can be assisted and stimulated in 
bringing about salary levels which will make 
the teaching profession competitive with 
other professions which require the same 
length of training and ability — we cannot 
hope to succeed in our efforts to improve the 
quality of our children's instruction and to 
meet the need for more teachers. 

These are problems of national proportion. 
Last year I sent to the Congress a proposal 
to meet the urgent needs of the Nation's ele- 
mentary and secondary schools. A bill 
(S. 1 021) embodying this proposal passed 
the Senate last year; and similar legislation 
(H.R. 7300) was favorably reported to the 
House by its Comrnittee on Education and 
Labor. It offered the minimum amount 
required by our needs and — in terms of 
across-the-board aid — the maximum scope 
permitted by our Constitution. It is impera- 
tive that such a proposal carrying out these 
objectives be enacted this session. I again 
urge the Congress to enact legislation pro- 
viding Federal aid for public elementary and 
secondary classroom construction and teach- 
ers' salaries. 

As noted earlier. Federal aid for con- 
struction and operation of many public 
schools has been provided since 1950 to those 
local school districts in which enrollments 
are affected by Federal installations. Such 
burdens which may remain from the impact 
of Federal activities on local school districts 
will be eased by my proposal for assistance 
to all school districts for construction and 
teachers' salaries, thus permitting modifica- 
tion and continuation of this special assist- 
ance program as proposed in last year's bill. 

A fundamental overhauling and moderni- 
zation of our traditional vocational educa- 
tion programs is also increasingly needed. 
Pursuant to my Message on Education last 
February, a panel of consultants to the Secre- 
tary of Health, Education, and Welfare is 
studying national needs in this area. They 
have been asked to develop recommenda- 



112 



]ohn F. Kennedy, 7962 



Feb. 6 [37] 



tions by the close of this year for improving 
and redirecting the Federal Government's 
role in this program. 

Improvement of Educational Quality 

Strengthening financial support for edu- 
cation by general Federal aid v^ill not, hov^- 
ever, be sufficient. Specific measures di- 
rected at selected problems are also needed 
to improve the quality of education. And 
the key to educational quality is the teach- 
ing profession. About one out of every 5 
of the nearly 1,600,000 teachers in our 
elementary and secondary schools fails to 
meet full certification standards for teaching 
or has not completed four years of college 
work. Our immediate concern should be to 
afford them every possible opportunity to 
improve their professional skills and their 
command of the subjects they teach. 

In all of the principal areas of academic 
instruction — English, mathematics, physical 
and biological sciences, foreign languages, 
history, geography, and the social sciences — 
significant advances are being made, both in 
pushing back the frontiers of knov^ledge and 
in the methods of transmitting that knowl- 
edge. To keep our teachers up-to-date on 
such advances, special institutes are offered 
in some of these areas by many colleges and 
universities, financed in part by the National 
Science Foundation and the Office of Educa- 
tion. Many elementary and secondary 
school teachers would profit from a full year 
of full-time study in their subject-matter 
fields. Very few can afford to do so. Yet 
the benefits of such a year could be shared 
by outstanding teachers with others in their 
schools and school systems as well as with 
countless students. We should begin to 
make such opportunities available to the 
elementary and secondary school teachers of 
this country and thereby accord to this pro- 
fession the support, prestige and recognition 
it deserves. 

Another need is for higher standards of 
teacher education, course content and in- 
structional methods. The colleges and uni- 
versities that train our teachers need finan- 



cial help to examine and further strengthen 
their programs. Increased research and 
demonstration efforts must be directed to- 
ward improving the learning and teaching 
of subject-matter and developing new and 
improved learning aids. Excellent but 
limited work in educational research and 
development has been undertaken by proj- 
ects supported by the National Science 
Foundation, the Office of Education, and 
private groups. This must be increased — 
introducing and demonstrating to far more 
schools than at present up-to-date educa- 
tional methods using the newest instruc- 
tional materials and equipment, and provid- 
ing the most effective in-service training and 
staff utilization. 

Finally, in many urban as well as rural 
areas of the country, our school systems are 
confronted with unusually severe educa- 
tional problems which require the develop- 
ment of new approaches — the problems of 
gifted children, deprived children, children 
with language problems, and children with 
problems that contribute to the high drop- 
out rate, to name but a few. 

To help meet all of these needs for better 
educational quality and development, and 
to provide a proper Federal role of assistance 
and leadership, I recommend that the Con- 
gress enact a program designed to help im- 
prove the excellence of American education 
by authorizing: 

(i) The award each year of up to 2,500 
scholarships to outstanding elementary and 
secondary school teachers for a year of full- 
time study; 

(2) The establishment of institutes at 
colleges and universities for elementary and 
secondary school teachers of those subjects 
in which improved instruction is needed; 

(3) Grants to institutions of higher edu- 
cation to pay part of the cost of special 
projects designed to strengthen teacher prep- 
aration programs through better curricula 
and teaching methods: 

(4) Amendment of the Cooperative Re- 
search Act to permit support of extensive, 
multi-purpose educational research, develop- 



113 



[37] Feb. 6 



Public Papers of the Presidents 



ment, demonstration, and evaluation proj- 
ects; and 

(5) Grants for local public school sys- 
tems to conduct demonstration or experi- 
mental projects of limited duration to 
improve the quality of instruction or meet 
special educational problems in elementary 
and secondary schools. 

II. ASSISTANCE TO HIGHER EDUCATION 

In the last ten days, both Houses of Con- 
gress have recognized the importance of 
higher education to the fulfillment of our 
national and international responsibilities. 
Increasing student enrollments in this decade 
will place a still greater burden on our insti- 
tutions of higher education than that im- 
posed on our elementary and secondary 
schools v^^here the cost of education per 
student is only a fraction as much. Between 
i960 and 1970 it is expected that college 
enrollments will double, and that our total 
annual operating expenditures for expand- 
ing and improving higher education must 
increase two and one-half times or by nearly 
$10 billion. 

In order to accomimodate this increase in 
enrollments, the OflSce of Education esti- 
mates that nearly $22 billion of college facili- 
ties will have to be built during the 1960's — 
three times the construction achieved in the 
last ten years. The extension of the college 
housing loan program — ^with a $1.5 billion 
loan authorization for five years, enacted as 
part of the Housing Act of 1961 — ^assures 
Federal support for our colleges' urgent 
residential needs. I am hopeful that the 
Congress will this month complete its action 
on legislation to assist in the building of 
the even more important and urgendy 
needed academic facilities. 

But I want to take this opportunity to 
stress that buildings alone are not enough. 
In our democracy every young person 
should have an equal opportunity to obtain 
a higher education, regardless of his station 
in life or financial means. Yet more than 
400,000 high school seniors who graduated 



in the upper half of their classes last June 
failed to enter college this fall. In this group 
were 200,000 who ranked in the upper 30 
percent of their class, of whom 5/3 to ^ 
failed to go on to college principally because 
of a lack of finances. Others lack the nec- 
essary guidance, incentive or the opportunity 
to attend the college of their choice. But 
whatever the reason, each of these 400,000 
students represents an irreplaceable loss to 
the nation. 

Student loans have been helpful to many. 
But they offer neither incentive nor assist- 
ance to those students who, by reason of 
family or other obligations, are unable or 
unwilling to go deeper into debt. The 
average cost of higher education today — 
up nearly 90 percent since 1950 and still 
rising — ^is in excess of $1,750 per year per 
student, or $7,000 for a four year course. 
Industrious students can earn a part of 
this — ^they or their families can borrow a 
part of it — but one-half of all American 
families had incomes below $5,600 in i960 — 
and they cannot be expected to borrow for 
example, $4,000 for each talented son or 
daughter that deserves to go to college. 
Federal scholarships providing up to $1,000 
a year can fill part of this gap. It is, more- 
over, only prudent economic and social pol- 
icy for the public to share part of the costs of 
the long period of higher education for 
those whose development is essential to our 
national economic and social well-being. All 
of us share in the benefits — all should share 
in the costs. 

I recommend that the full five year Assist- 
ance to Higher Education proposal before 
the Congress, including scholarships for 
more than 200,000 talented and needy stu- 
dents and cost of education payments to their 
colleges, be enacted without delay. 

III. SPECIAL EDUCATION AND TRAINING 
PROGRAMS 

I. Medical and Dental Education 

The health needs of our Nation require a 
sharp expansion of medical and dental edu- 



114 



John F. Kennedy, 7962 



Feb. 6 [37] 



cation in the United States. We do not 
have an adequate supply of physicians and 
dentists today — we are in fact importing 
many from abroad where they are urgendy 
needed — and the shortage is growing more 
acute, as the demand for medical services 
mounts and our population grows. Even to 
maintain the present ratio of physicians and 
dentists to population we must graduate 50 
percent more physicians and 90 percent more 
dentists per year by 1970, requiring not only 
the expansion of existing schools but the 
construction of at least 20 new medical 
schools and 20 new dental schools. 

But here again more buildings are not 
enough. It is an unfortunate and disturbing 
fact that the high costs of the prolonged 
education necessary to enter these profes- 
sions deprives many highly competent young 
people of an opportunity to serve in these 
capacities. Over 40 percent of all medical 
students now come from the 12 percent of 
our families with incomes of $10,000 or 
more a year, while only 14 percent of the 
students come from the 50 percent of the 
Nation's families with incomes under 
$5,000. This is unfair and unreasonable. 
A student's ability — ^not his parents' in- 
come — should determine whether he has 
the opportunity to enter medicine or 
dentistry. 

I recommend that Congress enact the 
Health Professions Educational Assistance 
Act which I proposed last year to (a) author- 
ize a ten-year program of matching grants 
for the construction of new medical and 
dental schools and (b) provide four-year 
scholarships and cost-of-education grants 
for one-fourth of the entering students in 
each medical and dental school in the United 
States. 

2. Scientists and Engineers 

Our economic, scientific and military 
strength increasingly requires that we have 
suJ0Scient numbers of scientists and engi- 
neers to cope with the fast-changing needs 
of our time — and the agency with general 
responsibility for increasing this supply to- 



day is the National Science Foundation. At 
the elementary and secondary school level, 
I have recommended in the 1963 Budget an 
expansion of the Science Foundation pro- 
gram to develop new instructional materials 
and laboratory apparatus for use in a larger 
number of secondary schools and to include 
additional subjects and age groups; an ex- 
pansion of the experimental summer pro- 
gram permitting gifted high school students 
to work with university research scientists; 
and an expansion in the number of National 
Science Foundation supported institutes of- 
fering special training in science and math- 
ematics for high school teachers throughout 
the country. The budget increase requested 
for this latter program would permit ap- 
proximately 36,000 high school teachers, rep- 
resenting about 30 percent of the secondary 
school teachers of science and mathematics 
in this country, to participate in the program. 
At the higher education level, I am recom- 
mending similar budget increases for insti- 
tute programs for college teachers; improve- 
ment in the content of college science, math- 
ematics and engineering courses; funds for 
laboratory demonstration apparatus; student 
research programs; additional top level grad- 
uate fellowships in science, mathematics and 
engineering; and $61.5 million in grants to 
our colleges and universities for basic re- 
search facilities. 

3. Reduction of Adult Illiteracy 

Adult education must be pursued ag- 
gressively. Over eight million American 
citizens aged 25 or above have attended 
school for less than five years, and more 
than a third of these completely lack the 
ability to read and write. The economic 
result of this lack of schooling is often 
chronic unemployment, dependency or de- 
linquency, with all the consequences this 
entails for these individuals, their families, 
their communities and the Nation. The 
twin tragedies of illiteracy and dependency 
are often passed on from generation to 
generation. 

There is no need for this. Many na- 



115 



[37] Feb. 6 



Public Papers of the Presidents 



tions — including our own — have shown 
that this problem can be attacked and vir- 
tually wiped out. Unfortunately, our State 
school systems — overburdened in recent 
years by the increasing demands of growing 
populations and the increasing handicaps of 
insufficient revenues — have been unable to 
give adequate attention to this problem. I 
recommend the authorization of a five-year 
program of grants to institutions of higher 
learning and to the States, to be coordinated 
in the development of programs which will 
offer every adult who is willing and able the 
opportunity to become literate. 

4. Education of Migrant Workers 

The neglected educational needs of Amer- 
ica's one million migrant agricultural work- 
ers and their families constitute one of the 
gravest reproaches to our Nation. The in- 
terstate and seasonal movement of migrants 
imposes severe burdens on those school dis- 
tricts which have the responsibility for pro- 
viding education to those who live there 
temporarily. I recommend authorization of 
a five year Federal-State program to aid 
States and school districts in improving the 
educational opportunities of migrant work- 
ers and their children. 

5. Educational Television 

The use of television for educational pur- 
poses — particularly for adult education — 
offers great potentialities. The Federal 
Government has sought to further this 
through the reservation of 270 television 
channels for education by the Federal Com- 
munications Commission and through the 
provision of research and advisory services 
by the Office of Education. Unfortunately, 
the rate of construction of new broadcasting 
facilities has been discouraging. Only 80 
educational TV channels have been assigned 
in the last decade. It is apparent that fur- 
ther Federal stimulus and leadership are es- 
sential if the vast educational potential of 
this medium is to be realized. Last year an 
educational television bill passed the Senate, 



and a similar proposal was favorably re- 
ported to the House. I urge the Congress 
to take prompt and final action to provide 
matching financial grants to the states to aid 
in the construction of state or other non- 
profit educational television stations. 

6. Aid to Handicapped Children 

Another long-standing national concern 
has been the provision of specially trained 
teachers to meet the educational needs of 
children afflicted with physical and mental 
disabilities. The existing program provid- 
ing Federal assistance to higher education 
institutions and to State education agencies 
for training teachers and supervisory person- 
nel for mentally retarded children was sup- 
plemented last year to provide temporarily 
for training teachers of the deaf. I recom- 
mend broadening the basic program to in- 
clude assistance for the special training 
needed to help all our children afflicted with 
the entire range of physical and mental 
handicaps. 

7. Federal Aid to the Arts 

Our Nation has a rich and diverse cultural 
heritage. We are justly proud of the vitality, 
the creativity and the variety of the contem- 
porary contributions our citizens can offer to 
the world of the arts. If we are to be among 
the leaders of the world in every sense of the 
word this sector of our national life cannot 
be neglected or treated with indifference. 
Yet, almost alone among the governments of 
the world, our government has displayed 
little interest in fostering cultural develop- 
ment. Just as the Federal Government has 
not, should not, and will not undertake to 
control the subject matter taught in local 
schools, so its efforts should be confined to 
broad encouragement of the arts. While 
this area is too new for hasty action, the 
proper contributions that should and can be 
made to the advancement of the arts by the 
Federal Government — many of them out- 
lined by the Secretary of Labor in his de- 
cision settling the Metropolitan Opera labor 



116 



John F. Kennedy, 7962 



Feb. 7 [38] 



dispute — deserve thorough and sympathetic 
consideration. A bill (H.R. 4172) already 
reported out to the House would make this 
possible and I urge approval of such a meas- 
ure establishing a Federal Advisory Council 
on the Arts to undertake these studies. 



IV. CONCLUSION 

The problems to which these proposals 
are addressed would require solution 
whether or not we were confronted with a 
massive threat to freedom. The existence of 
that threat lends urgency to their solution — 
to the accomplishment of those objectives 
which, in any case, would be necessary for 
the realization of our highest hopes and 
those of our children. "If a nation," wrote 



Thomas Jefferson in 1816, "expects to be 
ignorant and free, in a state of civilization, 
it expects what never was and never will be." 
That statement is even truer today than it 
was 146 years ago. 

The education of our people is a national 
investment. It yields tangible returns in 
economic growth, an improved citizenry and 
higher standards of living. But even more 
importantly, free men and women value 
education as a personal experience and op- 
portunity — as a basic benefit of a free and 
democratic civilization. It is our responsi- 
bility to do whatever needs to be done to 
make this opportunity available to all and to 
make it of the highest possible quality. 

John F. Kennedy 



38 Remarks at Ceremony on the Signing of Equal Opportunity 
Agreements by Leading Employers. February 7, 1962 



I WANT to express my thanks to all of you 
for taking part in this morning's effort, and 
particularly to express, I think, the country's 
great appreciation to the Vice President and 
the Secretary of Labor. 

Beginning with the effort which was 
made by the Lockheed Company last May,^ 
which in the last 6 months has made an 
intensive national company drive to improve 
the employment opportunities for mernbers 
of minority groups at all levels, not only in 
percentage of those who might be at the 
manual labor capacity, but professional, 
supervisory, and all the rest, it has done a 
most impressive job. And since that effort, 
other companies have joined. 

We really feel that this can be a tremen- 
dous factor in building our national strength. 
It is a voluntary effort by all of you. You 
are associating yourselves and your compa- 
nies, by your own choice, with a tremendous 
cause — which means that everyone should 
have the right to develop his talents freely 
without regard to any other factor. That is 



^See 1961 volume, this series, p. 396. 



what all of us believe in. As leaders of the 
private enterprise system, you believe in free- 
dom of choice and freedom of opportunity. 
And by this partnership, really, between 
yourselves and the National Government 
and the American people, I think we have a 
chance, through freedom, to really build a 
much stronger and more viable economy 
and society. 

So I express my thanks to you all. This 
is really a national service, and I am hopeful 
that all of you, as the presidents of these 
companies, will follow the progress made 
month by month and see whether, at the end 
of the 6-month period — 9 months or a year — 
we can really show in every classification 
substantial improvement. 

I cannot imagine anything more helpful 
to the country and to your companies than 
an indication that through this freedom of 
choice you are able to make this great prog- 
ress, and it will be an important blow in a 
whole variety of ways for progress in our 
private enterprise system and in the things 
in which we believe. 

So I want to thank you all and I hope that 



117 



[38] Feb. 7 



Public Papers of the Presidents 



this will be a beginning and in a few months 
will really be able to show substantial 
improvement. 

This is a matter which must also concern 
us in the Government. In some cases pri- 
vate companies have had better employment 
records in this regard than the National 
Government. So that this is a matter which 
we must concern ourselves with here, in 
every department and in every agency, to 
make sure that we all are making our con- 
tribution. I think together we can do the 
job. 

I want to express my thanks to you once 
more, and I think the thanks of everyone in 
this country. 



note: The President spoke at lo a.m. in the State 
Dining Room at the White House at a ceremony 
attended by representatives of 31 major defense 
contractors. 

Prior to his remarks Vice President Lyndon B. 
Johnson, Chairman of the President's Committee on 
Equal Employment Opportunity, spoke briefly com- 
mending the employers for their leadership in the 
equal employment opportunity field. He noted that 
with the signing of the agreements 52 "Plans for 
Progress" would then be in effect, involving plants 
employing more than 3 J/2 million people. 

At the conclusion of the President's remarks, 
Secretary of Labor Arthur J. Goldberg, Vice Chair- 
man of the Committee, reviewed the progress 
achieved in combating discriminatory employment 
practices. 

The remarks of the Vice President and of Secre- 
tary Goldberg were also released. 



39 Letter to the President of the Senate and to the Speaker of the 
House Transmitting a Communications Satellite Bill. 
February 7, 1962 

commercial communications satellite system 
in accordance with the principles set forth in 
my statement of guidelines issued last July 
24. In my judgment, a new Communica- 
tions Satellite Act is required to provide an 
appropriate mechanism for dealing effec- 
tively with this subject — a subject which, by 
nature, is essentially private enterprise in 
character but of vital importance to both our 
national and international interests and 
policies. 

Among the policy objectives pursued in 
the preparation of this measure have been 
the assurance of global coverage; cooperation 
with other countries; expeditious develop- 
ment of an operational system; the provision 
of service to economically less developed 
countries as well as industrialized countries; 
efficient and economical use of the frequency 
spectrum; nondiscriminatory access to the 
system by authorized users; maximum com- 
petition in the acquisition of equipment and 
services utilized by the system; and the 
strengthening of competition in the com- 
munications industry. 

Within this policy framework, particular 



Dear Mr. : 

This nation's space program has intro- 
duced a new dimension to progress. An 
increasing flow of peaceful benefits, both 
national and international, is materializing 
from our efforts to probe this new frontier. 
One of the most practical examples of our 
growing space competence is in the field of 
communications. Our intensive research 
and development in the field of communica- 
tions satellites have brought us to the point 
where we are now certain of the technical 
feasibility of transmitting messages to any 
part of the world by directing them to satel- 
lites for relay. This will provide an alter- 
native means to existing transoceanic cable 
and microwave radio systems, and, even 
more importandy, will permit ready com- 
munication among distant corners of the 
world. The proposed legislation which I am 
transmitting with this letter will enable us 
to translate this communications competence 
into actual performance. It is, therefore, a 
measure of immense long-range importance. 

This bill provides for the establishment, 
ownership, operation, and regulation of a 



118 



John F. Kennedy, 7962 



Feb. 7 [39] 



attention has been given to the question of 
the ownership of the entity that will operate 
this system. Throughout our history this 
country's national communication systems 
have been privately owned and operated, 
subject to governmental regulation of rates 
and service. In the case of the communica- 
tions satellite operation, our studies have 
convinced us that the national objectives out- 
lined above can best be achieved in the 
framework of a privately owned corporation, 
properly chartered by the Congress. The 
attached bill authorizes the establishment of 
such a corporation, financed through the sale 
of stock to the public. 

But a further question presented was 
whether the ownership should be limited to 
American companies currendy operating in 
the international communications field, or be 
open to the public at large. The only argu- 
ment advanced for the narrowly based own- 
ership which I found to have some merit was 
the contention that an investment in this cor- 
poration could in this way be treated as the 
acquisition of additional facilities, and thus 
as part of the existing rate base, of those 
participating companies already in the busi- 
ness, thereby permitting the rate of return to 
be spread over a very broad base and result- 
ing in lower service fees. Otherwise, it was 
reasoned, the expected unprofitable early 
years of the new corporation could well com- 
pel unduly high charges for the satellite 
services to provide investors a reasonable 
return. 

While this is an important consideration, 
it must also be realized that such a system is 
by nature a government-created monopoly — 
and that we cannot in good conscience limit 
its ownership to a few existing companies 
and exclude automatically all other potential 
investors who have equal rights to own a 
part of this Federally-developed enterprise. 
To meet all of these objectives, the following 
arrangement was devised and incorporated 
in the draft bill: The common stock of the 
corporation will be in two classes. Holders 
of Class A stock, open to the public, will 
have voting rights and will earn dividends. 



Class B stock, which may be purchased only 
by approved communication carriers, will 
not confer voting rights nor will it pay divi- 
dends; the amount of investment, however, 
will be included in the individual companies' 
rate base for other international communi- 
cations services. 

No investor would be permitted to own 
more than 15 percent of the total amount 
(f I billion) of the authorized Class A stock 
nor more than 25 percent of the Class A 
stock outstanding at any particular time, 
thereby preventing domination of the cor- 
poration by a single stockholder. There is, 
however, no limitation on the amount of 
Class B stock or securities which may be 
owned by any one investor. Further pro- 
tection against undue domination by any one 
stockholder is the limitation that any in- 
dividual stockholder or trustee may vote for 
only two out of the nine to thirteen members 
of the corporation's board of directors. 

Purposes and powers of the new corpora- 
tion would include: furnishing for hire 
channels of communication to authorized 
users, including the United States Govern- 
ment; acquiring and owning satellites, 
ground terminals, and other facilities neces- 
sary for the system's operation, management, 
and interconnection with terrestrial com- 
munications systems; conducting or contract- 
ing for research and development; and pur- 
chasing satellite launching and related serv- 
ices from the U.S. Government. 

Adequate authority and responsibility is 
reserved for the President to ensure that the 
policies and objectives of the Act are carried 
out effectively. The draft legislation does 
not interfere with or limit the existing pre- 
rogatives of any government agency; but 
because of the existing overlapping of re- 
sponsibilities and interests, it seeks to define 
and identify these responsibilities and ex- 
pressly assign them in an orderly fashion. 
In coordinating the efforts of the various 
departments and agencies, I expect to rely 
heavily on the Director of Telecommunica- 
tions Management, a new post to be estab- 
lished in the OflSce of Emergency Planning 



119 



[39] Feb. 7 



Public Papers of the Presidents 



to assist in planning for and managing the 
telecommunications resources of the United 
States.^ In addition, I will look to the Na- 
tional Aeronautics and Space Council for 
assistance in coordinating this new com- 
munications satellite program with other 
aspects of our space efforts. 

It is my firm conviction that the enactment 
of this legislation and the actual operation of 
such a system would provide a dramatic 
demonstration of our leadership in this area 
of space activity^ our intention to share the 
benefits of space for peaceful use, and the 
ability of this nation and its economic and 
political system to keep pace with a changing 



and complex world. The direct benefits — 
economic, educational, and political — of this 
improved world-wide communication will 
be invaluable. For these reasons I urge the 
Congress to give prompt and favorable atten- 
tion to the enclosed bill. 
Sincerely, 

John F. Kennedy 

note: This is the text of identical letters addressed 
to the Honorable Lyndon B. Johnson, President of 
the Senate, and to the Honorable John W. Mc- 
Cormack, Speaker of the House of Representatives. 
For the President's statement upon signing the 
Communications Satellite Act of 1962, see Item 355. 



40 The President's News Conference of 
February 7, 1962 



THE PRESIDENT. I have tw^o announcements 
to make. 

[i.] In the next days and w^eeks, there 
v^ill be a good deal said and w^ritten about 
tv^o American policies, one in the field of 
disarmament, and the other in the field of 
preparations which have already been an- 
nounced, to be in a position to test in the 
atmosphere if our national security indicates 
that it's desirable. 

There is no inconsistency here in my judg- 
ment, because I think that wt w^ould be 
deeply irresponsible not to follow both 
courses. We are making necessary prepara- 
tions for testing because of the wholly new 
situation created by the secretly prepared and 
massive series of 40 to 50 tests conducted by 
the Soviet Union last fall while active efforts 
for a test ban agreement were still going 
forward. 

This Soviet action took place in the face of 
a whole series of actions and efforts on our 
side. In the last year we have made at least 
a dozen new moves in a search for an agree- 
ment, and we have restated again and again 
our willingness to sign an effective treaty. 



^ The position of Director of Telecommunications 
Management was established February 16, 1962, by 
Executive Order 10995 (27 F.R. 151 9). 



We stated it before, during, and after the 
Soviet tests. The Soviet tests not only ended 
the moratorium; they presented us with 
grave questions as to the long range safety of 
avoiding all atmospheric tests while the 
U.S.S.R. remains able to prepare in secret, 
and then test at will. 

We are amply strong for today and to- 
morrow, but we must consider the future, 
too. These questions are still being re- 
viewed. And there will be no testing that 
is not clearly necessary, but I have ordered 
preparations because I shall not hesitate to 
order the tests themselves if it is decided that 
they are necessary to maintain the effective 
deterrent strength of the United States. 

Any other course would imply unilateral 
disarmament, and would serve no true 
course of peace. But at the same time, and 
with equal energy, we shall go on seeking a 
path towards a genuine and controlled dis- 
armament. What this means for atmos- 
pheric testing is methods of inspection and 
control which could protect us against a 
repetition of prolonged secret preparations 
for a sudden series of major tests. If and 
when effective agreements can be reached, 
no nation will be more ready than ours to see 
all testing brought under control, and nu- 
clear weapons as well. The fact that we 



120 



John F. Kennedy, 7962 



Feb. 7 [40] 



must prudently meet our defense needs in 
the meantime is only one more reason for 
working towards disarmament. So I repeat 
that these two courses are consistent with 
each other. We must follow both at once. 
It would be a great error to suppose that 
either of them makes the other wrong or 
unnecessary. 

I wholly disagree with those who would 
put all their faith in an arms race and 
abandon their efforts for disarmament. But 
I equally disagree with those who would 
allow us neglect of our defensive needs in 
the absence of effective agreements for con- 
trolled disarmament. 

[2.] Secondly, I want to take this oppor- 
tunity to express my pleasure at the Senate's 
action yesterday, retaining in the college aid 
bill the provision for 212,000 college scholar- 
ships. It is urgent that this provision be 
retained in the conference and not dropped 
out or compromised by another student loan 
program. A loan of $4,000 or $5,600 would 
enable many bright but needy students to re- 
ceive 4 years of college, working his way for 
the balance. But one-half of all American 
families earn less than $5,600 a year, and they 
simply cannot take on that kind of debt. 
Colleges which are caught in financial 
squeezes themselves can afford to offer 
scholarships to only about 10 percent of their 
students. All American parents want their 
children to have an opportunity to go to col- 
lege, but only a few are able to put aside the 
$7,000 which the average 4-year course now 
requires. The cost has nearly doubled since 
1950 and, as I said in my message, this Na- 
tion as a result loses each year the talents of 
hundreds and thousands of our most talented 
high school graduates who cannot afford to 
postpone earning a living for 4 more years. 
This is a real national and individual loss, 
and I hope the Congress will keep the 
scholarships in the bill. 

[3.] Q. Mr. President, in connection 
with your public school bill, two points: As 
I understand it, last year's piece of legisla- 
tion is, for all intents and purposes, dead in 
the Rules Committee, and Mr. Powell has 



said he won't move unless urgendy re- 
quested by you to do so. And now today, 
Cardinal Spellman said passage would bring 
an end to the parochial school system. 
Should your message be interpreted as that 
urging that Mr. Powell has talked about, and 
can the religious question be beaten? 

THE PRESIDENT. Well, as you know, when 
the Rules Committee, by a vote of eight to 
seven, tabled the bill last year, the procedures 
would now require a two-thirds vote of the 
Rules Committee to send it to the floor. I 
wish we could get a two-thirds vote. If we 
cannot, then another bill would have to come 
out of the House Education and Labor Com- 
mittee, and I am hopeful that members of 
the Labor Committee — Education Commit- 
tee — who did send the previous bill to the 
Rules Committee in the hope it would go to 
the floor — I'm hopeful that they will take 
action again. And, because I think it is 
such an urgent matter, I will do everything 
I can to have the Congress take favorable 
action on this subject this year. 

Now, in regard to the second part of the 
question, I took the oath to defend the Con- 
stitution. The position which I've taken on 
this matter I've taken after legal advice from 
the Attorney General, and from the counsel 
at the Department of HEW. 

It is a — I said the maximum which I 
thought we could carry on under the United 
States Constitution, and as I take my oath 
to defend it, that would be my position, un- 
less the Supreme Court decision should 
change the previous interpretation which 
had been made of that constitutional pro- 
vision. So I am going to continue to take 
the position I now take, unless — ^based on 
constitutional grounds — unless there is a 
new judgment by the Supreme Court. 

[4.] Q. Mr. President, there seems to be 
some doubt, at least on the local level and 
in the region where this is going on, as to 
the right of the American people and the 
rest of the world to know the extent of the 
battle in South Viet-Nam. Could you tell 
us, sir, what the situation there is? How 
deeply are we involved in what seems to be 



715-405 0—64- 



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121 



[40] Feb. 7 



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a growing war and what are the rights of the 
people to know what our forces are doing? 

THE PRESIDENT. There is a war going on in 
South Viet-Nam. I think that last week 
there were over 500 killings, assassinations, 
bombings. The casualties are high. It's a — 
I said last week — ^a subterranean war, guer- 
rilla war of increasing ferocity. The United 
States, since the end of the Geneva accord 
setting up the South Vietnamese Govern- 
ment as an independent government, has 
been assisting Viet-Nam economically to 
maintain its independence and viability, and 
also had sent training groups out there, 
which have been expanded in recent weeks 
as the attacks on the government and the 
people of South Viet-Nam have increased. 

We are out there on training and on 
transportation, and we are assisting in every 
way we properly can, the people of South 
Viet-Nam who with the greatest courage and 
under danger are attempting to maintain 
their freedom. 

Now, this is an area where there is a good 
deal of danger and it's a matter of informa- 
tion. We don't want to have information 
which is of assistance to the enemy — and it's 
a matter which I think will have to be 
worked out with the Government of Viet- 
Nam, which bears the primary responsibility. 

[5.] Q. My question concerns the im- 
passe which has arisen between Secretary 
McNamara and the Senate subcommittee 
inquiring into the alleged muzzling of the 
military at the Pentagon. Do you support 
the Secretary, sir, in his refusal to identify 
the reviewers who have made specific 
changes in speeches, and have you any sug- 
gestion on how the impasse may be resolved? 

THE PRESIDENT. Well, I'd like to first re- 
view exactly what the Secretary of Defense 
has made available to the committee. He 
has made available every speech that was 
given; he has made available all the changes, 
in each speech, which was suggested by the 
14 or 15 reviewers, two-thirds of whom are 
military officers, most of whom have had 
distinguished military records; he has made 
available the names of all of the reviewers. 



He has made — ^he has told the committee 
that he will make all of the reviewers 
available. 

He has also informed the committee that 
he will send an explanation for every change 
and the arguments for it. What he has not 
done, and what he, in my opinion, should 
not do, is attempt to subject each of these 
men to a long interrogation as to, personally, 
the reasons for which they might have taken 
on this word or that word. The responsi- 
bility is Secretary McNamara's and he is 
going to accept that responsibility and, in my 
opinion, that is the only way that a depart- 
ment can function. If he is going to get 
honest and loyal support from those who 
work for him in carrying out his policies, 
then Secretary McNamara must accept the 
responsibility, and he does accept it. 

And I think he has been extremely co- 
operative with the committee, and I don't 
think that Mr. McNamara or I, however, 
can agree to a harassment of individuals who 
are only carrying out the policies dictated by 
their superiors. And I think that Mr. Mc- 
Namara has cooperated very fully and will 
continue to do so in the areas which I've 
named. 

Q. Well, sir, would you recommend that 
he invoke Executive privilege, if necessary? 

THE PRESIDENT. If ncccssary, definitely. 

[6.] Q. Mr. President, your statement 
that a wholly new situation has been created 
by the Soviet nuclear tests suggests, or might 
be interpreted to mean that they have made 
some breakthrough, perhaps even overtaken 
us in nuclear capability. Can you tell us 
what your estimate of our strength versus 
theirs is in the light of their tests? 

THE PRESIDENT. My Statement today indi- 
cates our feeling about our relative position 
today and tomorrow, but this is a matter, of 
course, which is of continuing concern. 
These tests were very intensive. They have 
been in preparation for many months. And 
we — ^we could see a period go by possibly of 
another year or year and a half — secret prep- 
arations being made — and, suddenly, a new 
series of tests. And then extrapolations 



122 



]ohn F. Kennedy, 7962 



Feb. 7 [40] 



from those tests. And particularly when 
matters involving, for example, the anti- 
missile missile may be involved, you have to 
consider very carefully what the situation is 
going to be not today, not next year, but 3 
years or 4 years from now. The United 
States went far along the road in an attempt 
to get an agreement, not only the previous 
administration, but this administration. As 
Tve said before, it was obvious that these 
preparations had been going on for many 
months. Our preparations, which I have 
announced before, have taken many months 
since the Soviet tests. This is a long, drawn- 
out matter. And we cannot permit these 
tests to go on year after year, and at the same 
time expect that the security of the Western 
World is going to be protected. So I would 
say that my statement describes what I think 
is our present position, what our future risks 
are, and before any definite action is taken, 
any final decision is made, I will comment 
in detail to the American people for — ^the 
reasons for whatever decision we make. 

[7.] Q. Mr. President, in the circum- 
stances which you have now described and 
with the preparations which you have 
ordered presumably going forward, have we 
now reached agreement with the British on 
the use of Christmas Island? 

THE PRESIDENT. A Statement on that will 
be forthcoming very shordy, in the next 24 
hours or 48 hours. 

[8.] Q. Mr. President, Governor Rocke- 
feller had some harsh things to say about 
you last Thursday. It was in connection 
with your urban affairs proposal. I think 
he accused you of political fakery. I'm sure 
you know what he said. Would you want 
to comment on it? 

THE PRESIDENT. No. I was interested in 
the statement because, as you know, in 1956 
and 1957, Governor Rockefeller recom- 
mended the exact proposal that we recom- 
mended. The only difference, and I was 
recendy examining his recommendations to 
President Eisenhower, was that he recom- 
mended that civil defense be included, but 
as we have placed civil defense under the 



military, that really is the only significant 
change. So he must have, for one reason 
or another, changed his point of view on it. 

The second reason he criticized me was 
because I, in response to a question, said Mr. 
Weaver was going to be appointed. Now, 
obviously, the Governor has forgotten that 
on March 12, 1953, when President Eisen- 
hower sent up the proposal for the reorgani- 
zation of the establishment of the Depart- 
ment of HEW, on the 13th it came from the 
White House that he was going to appoint 
Mrs. Hobby to be the Secretary. And the 
only reason that I was astonished that the 
Governor then forgot it was that he then 
became her deputy, [Laughter] And — so 
that it seems to me that the situation is not 
altogether dissimilar. However, I did read 
that — Mr. Reston's column in the Times, 
where Mr. Fulton Lewis had said that no 
one could get to the right of Barry Gold- 
water, but now I'm not so sure. [Laughter] 

[9.] Q. Mr. President, in the event the 
seemingly impossible task of a complete and 
checked to 100 percent disarmament could 
be arranged with the Soviets, some have 
speculated this would provide a very severe 
blow to our economy. Would you comment 
on that, sir? 

THE PRESIDENT. Well, the disarmament 
agency has made a study of that, and talked 
about some of the problems that might be 
forthcoming economically. But of course, 
we could never have a change comparable to 
the change we had in '45 when we went 
from a tremendously high expenditure, at a 
time when our gross national product was 
far less than it is today, into a terribly sharp 
drive, and had 3 very, very prosperous years 
of full employment, so that that would be 
the last reason, I think, that we would bene- 
fit. We can do so many more useful things 
from a social point of view with — if we had 
the funds that were available, so I don't think 
that's any argument against disarmament. 
The problem, of course, is to make sure our 
security is protected and that the inspection 
systems be adequate, and that's what's hung 
us up in the past. 



123 



[40] Feb. 7 



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[lo.] Q. Mr. President, could I ask you 
to amplify your statement on nuclear tests. 
Did you mean to suggest that any decision 
taken by this Government to resume atmos- 
pheric tests will be contingent upon further 
or future Soviet tests ? 

THE PRESIDENT. No, it w^ill be Contingent 
upon our judgment as to the effects on our 
security of this series of tests, and the lessons 
and extrapolations that could be taken from 
them and w^hat effect this might have on our 
security at a later date. 

[ii.] Q. Mr. President, last v^eek in 
transmitting the report of the Disarmament 
and Arms Control Agency to Congress, you 
spoke not only of the hope but the expecta- 
tion that significant progress tow^ard v^ork- 
able disarmament v^ould be made at Geneva. 
In the light of recent events, could you clarify 
this "expectation" part of it? 

THE PRESIDENT. Well, I put morc stress on 
our hope and our earnest desire and our 
feeling that this arms race is — in the long 
run really doesn't provide really very great 
security for the human race or for all of those 
w^ho are involved in it. And it's our hope, 
and I'm sure that w^e're going to make a 
major effort at this disarmament conference 
to see if w^e can call a halt, because nuclear 
w^eapons are spreading to other countries, 
and if w^e try to look at w^hat the v^orld is 
going to look like in 1970 or 1975, v^ith all 
of the dangers that v^^e v^ill have v^^ith v^eap- 
ons of this size in the hands of a good many 
nations, w^e're going to make a major effort. 
I v^^as merely attempting to indicate -why I 
did not feel that our situation in these two 
areas was necessarily paradoxical. 

[12.] Q. Mr. President, a businessman 
and politician named George Romney has 
accused your administration of not doing 
enough for business and your party of being 
dominated by labor unions. Would you 
take this opportunity to reply to those 
charges? 

THE PRESIDENT. No, I think that I'll just 
let Mr. Romney — I saw the program and the 
statement. I think that he said that neither 
this administration nor the previous one had 



done enough for business, and I think that 
we'll have to wait and see what — as Mr. 
Romney 's positions evolve I think there 
may be a time for an appropriate comment — 
but I think it's still too early. [Laughter] 

[13.] Q. Mr. President, the Democratic 
organization has been criticized as unfairly 
attaching the John Birch Society to the 
Republican Party,, sort of guilt by associa- 
tion. Do you believe that such far right 
radical groups properly belong in the Repub- 
lican Party? [Laughter] And since Gen- 
eral Walker is running as a Democrat in 
Texas, do you believe he properly belongs 
in the Democratic Party? 

THE PRESIDENT. That questiou must have 
taken some — work. I will say that Presi- 
dent Eisenhower has been as vigorous in his 
denunciations of the John Birch Society as 
I have. I think that it certainly has no place 
in the Republican Party of President Eisen- 
hower, and I'm sure that among the respon- 
sible heads of the Republican Party, it has 
no place in their party. I quite agree, it is 
totally alien, I think, to both parties. 

Now, in regard to the second question, 
everybody is free to run, and the people will 
decide, in either party. 

[14.] Q. Mr. President, I understand 
that our Congo airlift has now surpassed the 
Berlin airlift of 1948. Could you tell me 
just what these supplies consist of and are 
we footing the bill entirely, or are the other 
U.N. nations also helping? 

THE PRESIDENT. Well, the cost of the air- 
lift is being paid for by the United Nations, 
to which we contribute. One of the ways 
in which we had hoped to lessen our con- 
tribution, as I have said, or to make our 
contribution more effective, rather, was 
through the bond issue. But they've been 
carrying — since the United Nations has as- 
sumed a responsibility in the Congo, we have 
been carrying supplies into that area for 
many months. And in order to fulfill the 
purposes of the United Nations which I 
think extremely important to the Congo, and 
I think that the support we've given to the 
operations in the Congo in my opinion 



124 



John F. Kennedy, 7962 



Feb. 7 [40] 



should be a source of satisfaction to us all. 

Q. Mr. President, that U.N. bond issue 
proposal is meeting sharp criticism, at least 
vocally, on the Hill, one argument against 
it being that we are putting in more than our 
share, and another one that the interest rates 
are — there's a discrepancy. Mr. Stevenson, 
as you know, however, this morning, testi- 
fied that it would be worth it if we just even 
had to give the $100 million to the U.N. 
Will you comment on the subject with your 
own thoughts? 

THE PRESIDENT. Well, we have put a good 
many millions of dollars into support of the 
U.N., and we've done — ^we've put a lot of 
money in the support of a lot of operations 
which are designed to permit people to be 
free. I indicated we put a lot of money over 
the last 8 years into Laos. We have con- 
tributed a good deal in the effort in Viet- 
Nam. So that these efforts have all required 
expenditures of money. But we do it be- 
cause we feel this is the only way that these 
countries can remain free. I think this bond 
issue represents a very sound investment for 
us. I am hopeful that other countries will 
match our effort. 

The United States is carrying a heavy 
load, but not only in the United Nations; 
it's carrying a heavy load around the world. 
The United States is making a major effort, 
for example, in Berlin and Viet-Nam and in 
Latin America. The burdens that we carry 
are greater than any other free country. 
But I must say that if we did not carry them, 
in my opinion, the cause of freedom would 
collapse in a whole variety of ways. And, 
I'm hopeful as Western Europe is strength- 
ened and the Common Market strengthened, 
that they will assume — not turn in, but 
rather out, and use the increased economic 
power of Western Europe to assist in main- 
taining the independence of these areas all 
around the globe, because we have been 
strained in our efforts to do so, although I 
think we ought to continue to do so, because 
the alternative will be a steady expansion of 
Communist power in all those areas, which 



I think would be far more expensive in the 
long run. 

[15.] Q. Mr. President, you have just 
concluded talks with the Secretary General 
of NATO, Mr. Stikker, and also talks with 
General Norstad, the Supreme Commander 
of NATO. Could you tell us, sir, if and 
how far advanced are the plans to convert 
NATO into an independent nuclear power? 

THE PRESIDENT. I have no comment at this 
time. This is a matter, of course, coming 
from the proposal which was made by Secre- 
tary Herter and in which I stated again at 
Ottawa and which is a matter now of con- 
cern to the NATO Council. When the 
matter has proceeded to the point when 
decisions might be needed, then would be 
an appropriate time to discuss it. 

[16.] Q. Mr. President, we have had 
several apparent setbacks and delays in our 
space field with the attempted moon shot, 
multiple satellite shot, and the postponement 
of the astronaut launching. What is your 
evaluation of our progress in space at this 
time? And have we changed our time 
table for landing a man on the moon? 

THE PRESIDENT. I think we — as I've said 
from the beginning, we've been behind and, 
of course, we continue to be behind. And 
we are running into the difficulties which 
come from starting late. We, however, are 
going to proceed. We're making a maxi- 
mum effort, as you know, and the expendi- 
tures in our space program are enormous. 
And, to the best of my ability, the time 
schedule, at least I hope, has not been 
changed by the recent setbacks. 

[17.] Q. Mr. President, stockpile infor- 
mation is no easier to come by than it was 
prior to your statement last week that a lot 
of this stuff ought to be declassified. Is there 
a disposition to hold this up for the Senate 
investigation or can you light a fire under 
some of these agencies? 

THE PRESIDENT. Well, I Set Up today a com- 
mittee under Mr. McDermott, who is the 
head of the agency, with the Secretaries of 
Defense, State, Commerce, Labor, to look 



125 



[40] Feb. 7 



Public Papers of the Presidents 



into the needs, our national needs, in the 
event of an emergency and also to consider 
the declassification of various matters. 

I think all this will be completed by the 
time the hearings begin, and then I think 
the hearings will make the information very 
complete. 

[18.] Q. Mr. President, the nuclear test 
question has been under consideration for 
some months now. Could you give us some 
idea of the time schedule you perceive from 
here on with respect to completing the stud- 
ies and making your decision? 

THE PRESIDENT. Well, we should know 
of — ^the studies and the examinations and 
the consideration by the Government should 
be, I would think, completed within the 
month. 

[19.] Q. Mr. President, there have been 
reports that Mr. Gromyko, in Moscow, has 
adopted such a negative attitude in his dis- 
cussions on Berlin with Ambassador Thomp- 
son that the administration has decided that 
if the talks are to continue, that the Soviets 
will have to take the initiative in seeking the 
next meeting. Could you tell us whether 
this is true and could you discuss your out- 
look and reaction to these talks? 

THE PRESIDENT. No, wc have not made 
very great progress in the talks. There has 
been a setting forth by each side of various 
positions. But I think the talks should con- 
tinue and we are prepared to cooperate in 
continuing them — because the alternatives 
are not satisfactory — if we can possibly reach 
an accord. So we will continue to work even 
though the so-called probes have not pro- 
duced any satisfactory common ground as 
yet. 

[20.] Q. Mr. President, would the 
United States be willing, without further 
nuclear tests in the atmosphere, to sign a 
formal treaty with the Soviet Union banning 
such tests? 

THE PRESIDENT. Well, IVe Stated that our 
concern would be — ^we stated it before, since 
and, as I said, afterwards — that we would 
sign an agreement which provided for 



adequate inspections system — that's correct. 
But adequate inspection in regard to prepa- 
rations, as well as testing. Because, other- 
wise 

Q. My question was hinged on further 
tests in the atmosphere. 

THE PRESIDENT. I Understand that. We 
will support the passage of an effective treaty 
which provides for effective inspection, but 
we cannot take less in view of the fact of our 
experience of the past months, where it takes 
us many months to prepare for tests in the 
atmosphere. The Soviet Union could pre- 
pare in secret, and we would — unless we had 
adequate protection against a repetition of 
that incident. Any such test agreement 
obviously would be extremely vulnerable. 

[21.] Q. Mr. President, in connection 
with your forthcoming statement on Christ- 
mas Island, I understand that the United 
Nations Trusteeship Council, particularly 
Russia and India, will attempt or has at- 
tempted to prohibit all atmospheric testing 
in the Central and South Pacific. My ques- 
tion is: Is this true? If it is true, how much 
does it weigh in your decision to resume 
this testing? 

THE PRESIDENT. Well, I think that one of 
the reasons that Christmas Island becomes 
a matter of importance is because of our spe- 
cial trustee relationship with Eniwetok and 
because we are anxious to maintain the spirit 
as well as the letter of the trustee agreement. 
But in my opinion, that would not inhibit 
any action we might take in Christmas Is- 
land because the situation is entirely differ- 
ent legally and the responsibilities are 
entirely different, and that's also true of 
Johnston Island. 

[22.] Q. Mr. President, with regard to 
the steel contract negotiations, you've said 
that you neither want a strike, itself, and 
you would like to get the contract setded 
soon enough to prevent the ill effects of 
anticipation of a strike. Do you have a date 
in mind by which time you think it should 
be settled, and how are you keeping in touch 
with the parties ? 



126 



]ohn F. Kennedy, 1962 



Feb. 7 [40] 



THE PRESIDENT. Well, I doii't havc a date 
in mind, diough I think the earlier the better 
because of the danger of stockpiling which 
will, in my opinion, produce later unemploy- 
ment, if it is permitted to build up until 
June and July. Secretary Goldberg has been 
in contact with them, and I've indicated my- 
self my strong feeling that the public interest 
and each of their private interests would be 
served by an early agreement. 

Q. You have been in contact with them 
yourself, haven't you? 

THE PRESIDENT. Yes, I havc, yes. 

[23.] Q. Mr. President, just a minute 
ago you expressed the hope that because of 
our burdens the other nations would match 
our purchases in the bond issue. Several 
Senators yesterday were suggesting that we 
match their purchases. Would you be will- 
ing, the administration be willing, to turn 
this around so that 

THE PRESIDENT. Well, I think we havc to 
wait and see what the legislative prospects 
are. I think we ought to buy the $100 mil- 
lion worth. I think the other countries 
ought to buy $100 million worth of bonds. 
We are prepared to meet our responsibilities. 
I hope they will be. I think we should take 
an aflSrmative attitude towards the prospects 
of this and also to recognize how essential 
it is. Now, if this fails, then the U.N. will 
be, as Secretary Rusk said yesterday, in dire 
financial circumstances. It would obviously 
mean a complete — ^the emergency operation 
taking place in the Middle East and in the 
Congo would, of course, come to an end, 
unless we put in bilaterally a subsidy which 
would cause other countries to do a bilateral 
action of their own, and you would have 
chaos in the Congo and a defeat of any at- 
tempts to set up a stable and free govern- 
ment. I must say that I think to — that the 
promise there is of success against this dis- 
aster, which both administrations have been 



attempting to prevent, which is chaos and 
massive civil war and insurrections and all 
the rest in the Congo^-I really feel we ought 
to go ahead on both sides. And I'm hope- 
ful they will. 

[24.] Q. Mr. President, on the test issue: 
if I understand what you've been saying 
correcdy, you've introduced a new element 
into these negotiations — ^that is, inspection 
which would cover any possible secret prepa- 
rations for tests. Is this in fact a new ele- 
ment that the United States is introducing 
and, if so, how might you meet that problem 
in an inspection system? 

THE PRESIDENT. I think this is a matter 
which should be discussed at the disarma- 
ment conference. But I think that any 
agreement — if we're not to have an agree- 
ment whereby some time would go by and 
then, when the Soviets have exhausted the 
information they have acquired from this 
series of tests, suddenly overnight begin 
another series of tests, meanwhile 2 years 
have gone by and many scientists and others 
who might have been working on this may 
have gone into other occupations. 

This is a — I think it's a deadly business, 
this competition. And I don't say that much 
security comes out of it. But less security 
would certainly come out of it if we per- 
mitted them to make a decisive breakthrough 
in an area like an ICBM. So that we would 
have to have some assurances against a 
repetition of this summer's incident before 
we would feel that the treaty was a satis- 
factory one. But it is a matter which should 
be discussed, I think, in March at the dis- 
armament conference. 

Reporter: Thank you, Mr. President. 

note: President Kennedy's twenty-third news con- 
ference was held in the State Department Audi- 
torium at 4 o'clock on Wednesday afternoon, 
February 7, 1962. 



127 



[4i] Feb. 8 



Public Papers of the Presidents 



41 Joint Statement With the British Government Concerning 
Nuclear Tests. February 8, 1962 



IT IS the joint view of the United States and 
the United Kingdom Governments that the 
existing state of nuclear development, in 
which the recent massive Soviet tests are an 
important factor, would justify the West in 
making such further series of nuclear tests 
as may be necessary for purely military 
reasons. 

The United States and United Kingdom 
Governments have therefore decided that 
preparations should be made in various 
places, and as part of these the United King- 
dom Government is making available to the 
United States Government the facilities at 
Christmas Island. 

The two Governments are, however, 
deeply concerned for the future of mankind 
if a halt cannot be called to the nuclear arms 
race. The two Governments are, therefore. 



determined to make a new effort to move 
away this sterile contest. They believe that 
a supreme effort should be made at the 
Eighteen Nation Disarmament Committee 
which will begin meetings on March 14 at 
Geneva, and that the Heads of Government 
of the United States, United Kingdom, 
Union of Soviet Socialist Republics should 
assume a direct and personal interest in these 
negotiations. The President and the Prime 
Minister have, therefore, addressed a joint 
communication to Chairman Khrushchev 
proposing that this meeting be initiated at 
the Foreign Minister level and that their 
Foreign Ministers should meet before the 
Conference started and also be prepared to 
return as personal participants in the nego- 
tiations at appropriate stages as progress is 
made. 



42 Joint Message With Prime Minister Macmillan to Chairman 
Khrushchev on the Forthcoming Disarmament Negotiations 
in Geneva. February 12, 1962 

[ Released February 12, 1962. Dated February 7, 1962 ] 



Dear Mr, Chairman: 

We are taking the unusual step of address- 
ing this message to you in order to express 
our own views, as well as to solicit yours, on 
what we can jointly do to increase the pros- 
pects of success at the new disarmament 
negotiations which will begin in Geneva in 
March. 

We are convinced that a supreme effort 
must be made and the three of us must ac- 
cept a common measure of personal obliga- 
tion to seek every avenue to restrain and 
reverse the mounting arms race. Unless 
some means can be found to make at least 
a start in controlling the quickening arms 
competition, events may take their own 
course and erupt in a disaster which will 
afflict all peoples, those of the Soviet Union 



as well as of the United Kingdom and the 
United States. 

Disarmament negotiations in the past 
have been sporadic and frequently inter- 
rupted. Indeed, there has been no sustained 
effort to come to grips with this problem at 
the conference table since the three months 
of meetings ending in June of i960, over 
a year and a half ago. Before that, no real 
negotiations on the problem of general dis- 
armament had taken place since negotiations 
came to an end in September 1957. 

It should be clear to all of us that we can 
no longer afford to take a passive view of 
these negotiations. They must not be al- 
lowed to drift into failure. Accordingly, 
we propose that we three accept a personal 
responsibility for directing the part to be 



128 



John F. Kennedy, 7962 



Feb. 12 [42] 



played by our representatives in the forth- 
coming talks, and that we agree beforehand 
that our representatives will remain at the 
conference table until concrete results have 
been achieved, however long this may take. 

We propose that our negotiators seek 
progress on three levels. First, they should 
be instructed to work out a program of gen- 
eral and complete disarmament which could 
serve as the basis for the negotiation of an 
implementing treaty or treaties. Our nego- 
tiators could thus build upon the common 
ground which was found in the bilateral 
talks between the United States and the 
USSR which took place this summer, and 
which were reflected in the Statement of 
Agreed Principles of September 20, 1961. 
Secondly, our negotiators should attempt to 
ascertain the widest measure of disarmament 
which would be implemented at the earliest 
possible time while still continuing their 
maximum efforts to achieve agreement on 
those other aspects which present more dif- 
ficulty. Thirdly, our negotiators should try 
to isolate and identify initial measures of dis- 
armament which could, if put into effect 
without delay, materially improve interna- 
tional security and the prospects for further 
disarmament progress. We do not believe 
that these triple objectives need conflict with 
one another and an equal measure of 
urgency should be attached to each. 

As a symbol of the importance which we 
jointly attach to these negotiations, we pro^ 
pose that we be represented at the outset of 
the disarmament conference by the Foreign 
Ministers of our three countries, who would 
declare their readiness to return to partici- 
pate personally in the negotiations as the 
progress made by our permanent representa- 
tives warrants. We assume, in this case, the 



foreign ministers of other states as well will 
wish to attend. The status and progress of 
the conference should, in addition, be the 
subject of more frequent communications 
among the three of us. In order to give 
impetus to the opening of the disarmament 
negotiations, we could consider having the 
Foreign Ministers of our three countries 
convene at Geneva in advance of the open- 
ing of the conference to concert our plans. 
At this time in our history, disarmament 
is the most urgent and the most complex 
issue we face. The threatening nature of 
modern armaments is so appalling that we 
cannot regard this problem as a routine one 
or as an issue which may be useful primarily 
for the scoring of propaganda victories. 
The failure in the nuclear test conference, 
which looked so hopeful and to the success 
of which we attached such a high priority 
in the Spring of 1961, constitutes a discour- 
aging background for our new efforts. 
However, we must be resolved to overcome 
this recent setback, with its immediate con- 
sequences, and forego fruitless attempts to 
apportion blame. Our renewed effort must 
be to seek and find ways in which the com- 
petition between us, which will surely persist 
for the foreseeable future, can be pursued on 
a less dangerous level. We must view the 
forthcoming disarmament meetings as an 
opportunity and a challenge which time and 
history may not once again allow us. 

We would welcome an early expression of 
your views. 

John F. Kennedy 
Harold Macmillan 

[Nikita Khrushchev, Chairman, Council of Minis- 
ters, Union of Soviet Socialist Republics, The Krem- 
lin, Moscow, U.S.S.R.] 



129 



[43] Feb. 12 



Public Papers of the Presidents 



43 Remarks to the Members o£ the President's Commission on the 
Status of Women. February 12, 1962 



Mr, Secretary, ladies and gentlemen: 

I want to express my thanks to all of you 
for an important assignment. We have 
established this Commission for two rea- 
sons. One is for my own self-protection: 
every 2 or 3 weeks Mrs. May Craig asks me 
what I am doing for women! 

The other reason is because this is a matter 
of great national importance — and of inter- 
national importance. One-third of our 
working force are women. They have a 
primary obligation to their families and to 
their homes, but they also — their work 
makes it possible to maintain that home and 
that family in many cases. We want to 
make sure that they are able to move ahead 
and perform their functions without any 
discrimination by law or by implication. 
And we want that in the Government, and 
stimulus through Mrs. Peterson and the 
Secretary and the Civil Service Commis- 
sion — ^we have attempted to make it possible 
for every woman to receive compensation 
and receive a response from her work com- 
pletely in accord with the work which she 
does. We want that to be true legally. We 
think that this Commission could usefully 
examine laws across the country which may 



adversely affect the rights of women. Wc 
want to examine this question of their com- 
pensation and whether they are receiving 
compensation in accordance with the serv- 
ice they render, whether they are being pro- 
tected in their promotion rights, and all the 
rest. The Commission should examine the 
things that are right and things that are 
wrong. So they are very interdependent. 
Mrs. Roosevelt has once again offered to 
serve the country in this important job, and 
I am glad that all of you here who are lead- 
ers in this country have been willing to give 
your time to it. I can't imagine any more 
important assignment — not merely for 
women, but for members of Congress, 
organized labor, women's organizations 
themselves, religious groups, and all the 
rest. I think that this is a job that we ought 
to do. So we look forward very eagerly to 
your results and I promise you that we are 
strongly behind you in all your work. 

note: The President spoke in the Fish Room at 
the White House. During his remarks he referred 
to Secretary of Labor Arthur J, Goldberg, Mrs. 
Esther Peterson, Assistant Secretary of Labor for 
Women's Affairs, and Mrs. Franklin D. Roosevelt, 
Chairman of the Commission. 



44 Remarks of Welcome to King Saud of Saudi Arabia at 
Andrews Air Force Base. February 13, 1962 



YOUR MAJESTY, I want to express on be- 
half of the people of the United States, on 
behalf of the Government, and on my own 
behalf, our great pleasure and satisfaction 
in welcoming you again to the United States. 

You have been here on several occasions 
before, on the occasion of a state visit in 1957 
during my predecessor's term of office, and 
it is a source of satisfaction to welcome you 
here again. 

Relations between your country and this 
country have been close and cordial, and it 



is my hope that as a result of your visit here 
to Washington on this occasion, that those 
relations will become even closer during the 
days and years to come. 

So, Your Majesty, I can assure you of a 
warm welcome here in Washington and in 
the United States — to you — ^to the members 
of your family who accompany you — ^to the 
members of your government. 

And we express the hope that this visit 
will be only one of a series which will mark 
ever increasingly intimate relations between 



130 



John F. Kennedy, 7962 



Feb. 13 [46] 



Saudi Arabia and the United States. 
Your Majesty, you are most welcome here. 

note; King Saud responded (through an inter- 
preter) as follows: 

Mr. President, I wish to express to you my grati- 
tude for both your kind invitation and your hearty 
welcome to your great Capital. Ever since my 
arrival in Boston for treatment, Your Excellency has 
on several occasions shown concern over my health 



and wishes for a speedy recovery, these noble gestures 
culminating in your courtesy visit to my convales- 
cent resort in Palm Beach. Your friendly sentiments 
will ever be remembered with deep recognition. 

Although this visit is very short, yet I deem it of 
importance to the common interests of our two 
countries, and I am looking forward to our sched- 
uled meeting this afternoon, which I am sure will 
strengthen our already existing good relations. 



45 Joint Statement Following Discussions With King Saud. 
February 13, 1962 



ON FEBRUARY 13, His Majesty King 
Saud and President Kennedy held oflScial 
conversations at the White House, during 
which Saudi Arabian-American relations 
and international affairs were discussed in a 
spirit of frankness and cordiality. King 



Saud and the President are confident that 
this additional opportunity to become better 
acquainted personally can only result in 
greater mutual understanding between 
Saudi Arabia and the United States. 



46 Toasts of the President and King Saud. 
February 13, 1962 



Gentlemen: 

I know I speak for us all in welcoming 
you to this country, Your Majesty. I think 
that all of us remember the dramatic stage 
in the life of this country at the meeting be- 
tween President Roosevelt and your father 
in the Red Sea during the great days of the 
Second World War. And we also know 
that you have been a vigilant and courageous 
defender of your country's sovereignty and 
independence. You yourself have had a 
distinguished military record, and come from 
a race which has been outstanding in the 
defense of its rights. So that we welcome 
you, and the members of your family, and 
the members of your government. 

We are most anxious that the ties of friend- 
ship which have bound together two coun- 
tries which are divided by so much water 
and land, Saudi Arabia and the United 
States, will remain strong. I can assure you 
that your visit here and the opportunity that 
I had to see you in Palm Beach I believe has 



strengthened relations between us, and also 
between our countries, and I consider that 
to be in the security of both, in these very 
difficult and dangerous days. 

So I hope that all of you will join with 
me in drinking to the people, the govern- 
ment, and to His Majesty the King of Saudi 
Arabia. 

note: The President proposed the toast at a state 
dinner at the White House. King Saud responded 
(through an interpreter) as follows: 

Mr. President: 

I would like to thank you for your kindness and 
hospitality. And as I said to you earlier today in 
our meeting, I wish to maintain and even consolidate 
and strengthen the existing friendly relations be- 
tween our two countries. 

We greatly cherish the friendship which exists 
between the United States of America and Saudi 
Arabia — a friendship which is based on principles 
which recognize the rights of peoples. This we 
shall seek to strengthen and further in the ftiture, 

[Then His Majesty offered a toast to President 
Kennedy.] 



131 



[47] Feb. 14 



Public Papers of the Presidents 



47 Remarks to the Policy Committee of the Communications 
Workers of America. February 14, 1962 



I WANT to welcome you all here this morn- 
ing. It is a great source of satisfaction to 
me. I am an old friend of your president, 
Joe Beirne. In 1947 he and I were 2 of the 
10 outstanding young men, according to the 
Junior Chamber of Commerce. But I do 
also want to welcome you because yours is 
an outstanding union, and I am a great be- 
liever in the contribution which the union 
movement can make, not only in this coun- 
try in maintaining a progressive economy, 
but also the contribution which the union 
movement can make around the world. 

I stated to the AFL-CIO national conven- 
tion that the efforts which the AFL-CIO 
have made around the world to strengthen 
the free democratic trade union movement, 
I believe, represented one of the great con- 
tributions in the struggle against the Com- 
munist advance which has been made in the 
last 15 to 20 years. 

I want to commend you. I know that 
you are here in Washington taking part in 
one of the most important assignments 
which faces your union, to make a determi- 
nation of what you should do in regard to 
collective bargaining. I know that Dr. 



Heller had an opportunity to talk with you 
yesterday. I want to commend you for the 
responsible way that you are moving towards 
your assignment. 

We are all concerned not only with ad- 
vancing the public interest — you have a 
responsibility towards your members and 
towards the country, and I am sure that you 
are going to meet your responsibility to both 
of these — to your people and to all the Amer- 
ican people in maintaining our economy in a 
way which protects our people, and makes 
it possible for them to participate more fully 
in our lives here. 

I welcome you to the White House. It 
belongs to all of you. I welcome you here 
individually and also because you represent 
an oustanding American organization, and 
also because of your distinguished president, 
whom I regard as one of the outstanding 
leaders of the American labor movement 
today. Joe, we are glad to have you all here. 

note: The President spoke at 9:45 a.m. in the Rose 
Garden at the White House. During his remarks 
he referred to Walter W. Heller, Chairman, Council 
of Economic Advisers. 



48 Message to Chairman Khrushchev Concerning the Forthcoming 
Disarmament Negotiations in Geneva. February 14, 1962 



Dear Mr, Chairman: 

In reading your letter of February lo, 1962 
I was gratified to see that you have been 
thinking along the same lines as Prime 
Minister Macmillan and myself as to the 
importance of the new disarmament nego- 
tiations which will begin in Geneva in 
March. I was gratified also to see that you 
agree that the heads of government should 
assume personal responsibility for the success 
of these negotiations. 

The question which must be decided, of 
course, is how that personal responsibility 



can be most usefully discharged. I do not 
believe that the attendance by the heads of 
government at the outset of an i8-Nation 
conference is the best way to move forward. 
I believe that a procedure along the lines of 
that outlined in the letter which Prime 
Minister Macmillan and I addressed to you 
on February 7 ^ is the one best designed to 
give impetus to the work of the conference. 
I agree with the statement which you have 
made in your letter that there exists a better 



^Item 42. 



132 



]ohn F. Kennedy, 7962 



Feb. 14 [49] 



basis than has previously existed for success- 
ful work by the conference. The Agreed 
Statement of Principles for Disarmament 
Negotiations which was signed by repre- 
sentatives of our countries on September 20, 
1 961 and which was noted with approval by 
the 1 6th General Assembly of the United 
Nations represents a foundation upon which 
a successful negotiation may be built. 

As you have recognized, there still exist 
substantial differences between our two posi- 
tions. Just one example is the Soviet un- 
willingness so far to accord the control or- 
ganization the authority to verify during the 
disarmament process that agreed levels of 
forces and armament are not exceeded. 

The task of the conference will be to at- 
tempt to explore this and other differences 
which may exist and to search for means of 
overcoming them by specific disarmament 
plans and measures. This does not mean 
that the conference should stay with routine 
procedures or arguments or that the heads 
of government should not be interested in 
the negotiations from the very outset. It 
does mean that much clarifying work will 
have to be done in the early stages of nego- 
tiation before it is possible for Heads of 
Government to review the situation. TTiis 
may be necessary in any case before June i 
when a report is to be filed on the progress 
achieved. 

I do not mean to question the utility or 
perhaps even the necessity of a meeting of 
Heads of Government. Indeed, I am quite 
ready to participate personally at the Heads 



of Government level at any stage of the 
conference when it appears that such par- 
ticipation could positively affect the chances 
of success. The question is rather one of 
timing. I feel that until there have been 
systematic negotiations — until the main 
problems have been clarified and progress 
has been made, intervention by Heads of 
Government would involve merely a general 
exchange of governmental position which 
might set back, rather than advance, the 
prospects for disarmament. It is for these 
reasons that I think that meetings at the 
highly responsible level of our Foreign 
Ministers as well as the Foreign Ministers 
of those other participating states who wish 
to do so would be the best instrument for 
the opening stages. 

A special obligation for the success of 
the conference devolves upon our two Gov- 
ernments and that of the United Kingdom 
as nuclear powers. I therefore hope that the 
suggestion made in the letter of Prime 
Minister Macmillan and myself to you, that 
the Foreign Ministers of the three countries 
meet in advance of the conference in order 
to concert plans for its work, will be accept- 
able to the Soviet Government. 

John F. Kennedy 

note: Chairman Khrushchev's letter of February lo 
is published in the State Department Bulletin (vol. 
46, p. 356). The Joint Statement of Agreed Princi- 
ples for Disarmament Negotiations, referred to in 
the third paragraph, is also published in the Bulletin 
(vol. 45, p. 589). 



49 Remarks at the Presentation of an Award to the National 
Association of Broadcasters. February 14, 1962 



WELL, GENERAL, I v^ant to second what 
you have said. The National Association of 
Broadcasters since 1955, in response to the 
request from the President and from the 
Committee, has given untiring support to 
a great national effort to hire handicapped 
people. 



I think that in the last decade over $50 mil- 
lion worth of time has been given by the 
television and radio industry. I think it is 
running at the rate of about $5 million a 
year, with emphasis in every possible part 
of the country on the opportunity and the 
obligation on all of us to hire people who 



133 



[49] Feb. 14 



Public Papers of the Presidents 



may because of accident or because of nature 
be suffering from a handicap. 

I want to emphasize today that we are 
changing the name of this Committee 
from "Physically Handicapped" to "Handi- 
capped," because we do want to emphasize 
the great importance of hiring people who 
may have suffered some degree of difficulty 
mentally. And these people deserve our 
wholehearted support and cooperation in 
making it possible for them to live useful 
and fruitful lives. 

So now, on behalf of the Committee, and 
with the General, I want to present to Gov- 
ernor Collins — and I will read the citation: 



"The President of die United States cites 
with pleasure the National Association of 
Broadcasters for distinguished service in en- 
couraging and promoting the employment 
of the physically handicapped." 

I want to congratulate you. Governor, and 
express our appreciation to you for your 
efforts. 

note: The President spoke at noon in the Fish Room 
at the White House following the remarks of Maj. 
Gen. Melvin J. Maas, Chairman of the President's 
Committee on Employment of the Physically Handi- 
capped. LeRoy Collins, President of the National 
Association of Broadcasters and former Governor 
of Florida, accepted the Committee's Distinguished 
Award on behalf of the Association. 



50 



The President's News Conference of 
February 14, 1962 



THE PRESIDENT. I hkve one statement. 

[i.] There have been a number of ques- 
tions directed to the White House and other 
governmental agencies about our release of 
Col. Rudolf Abel, and the freeing of Francis 
Gary Powers and Frederic Pryor from deten- 
tion in the Soviet Union and East Germany, 
respectively. 

Let me say first that I'm deeply pleased 
that the pilot, Mr. Powers, and the student, 
Mr. Pryor, have been released and reunited 
with their families. I shall be doubly pleased 
if their release turns out to be a sign of 
possible significant progress in the lessening 
of world tensions. 

As for the whereabouts of Mr. Powers, I 
can state at this time only that he's in this 
country, that he has seen his father and 
mother, and that his wife is with him. He 
is undergoing important interviews by ap- 
propriate officials of this Government. Mr. 
Powers is cooperating voluntarily with the 
Government in these discussions. At the 
conclusion of these discussions, the informa- 
tion derived from these interviews will be 
made available to appropriate committees of 
the Congress, and Mr. Powers will be free to 
testify before the Congress, should the Con- 
gress so wish. Mr. Powers will be made 



available to the press at the earliest feasible 
moment. 

Q. Mr. President, when Mr. Powers com- 
pletes this interrogation and he's free to 
testify, what will his status be? Will the 
Government still have any claim on his serv- 
ices or will he be a free agent to go as he 
pleases? 

THE PRESIDENT. Well, hc's a free agent, as 
I've said at the present time, to go as he 
pleases. He is cooperating voluntarily with 
the Government, and at the conclusion of 
the present discussions, he will be free to 
carry on whatever work he should choose. 

Q. Mr. President, is it possible to say now 
how Powers was brought down in Russia, 
whether he was shot down or whether it was 
mechanical trouble? 

THE PRESIDENT. It would sttvci to me that 
this question and others relating to it really 
should wait until the interrogations have 
been completed, and until the Government 
has finished talking about all these matters 
with Mr. Powers. Then, as I say, he will be 
available, and will give whatever informa- 
tion would be in the national interest to give. 

[2.] Q. Mr. President, can you comment 
on Prime Minister Macmillan's statement 
yesterday that there will be no testing on 



134 



John F. Kennedy, 1962 



Feb. 14 [50] 



Christmas Island before the opening of the 
Geneva conference, and have developments 
in the last week affected our plans? 

THE PRESIDENT. No, that Statement of the 
Prime Minister of course is correct, and noth- 
ing in the events of the last v^^eek— if you're 
referring to the exchange of communications 
with Chairman Khrushchev which we had 
and the letter back, and now our letter back 
to him — ^that has not changed our plans. As 
Fve stated, by the end of the month we will 
have concluded our analysis of our relative 
positions and we will be in a position to make 
a decision. But in any case, whichever way 
the decision would go, there would be no 
testing, as the Prime Minister said, on 
Christmas Island before that date. 

Q. Mr. President, to refer to your letter 
to Premier Khrushchev this morning, with- 
out meaning to exclude other examples, 
could you give us one example of the kind 
of progress in the disarmament talks that 
might lead you to participate personally in 
a summit conference? 

THE PRESIDENT. If the discussious at 
Geneva indicated that genuine progress 
could be made which would provide for a 
responsible disarmament agreement, an 
effective disarmament agreement, with effec- 
tive inspection which, of course, must be a 
part of any disarmament agreement, if it's 
going to be — truly meet the international 
needs, then of course, if we are moving 
ahead in that kind of area, and my presence 
at a meeting in Geneva would advance that 
cause, of^ course I would go. But our point 
is, in the letter, that what we want to do is 
try to make that progress in the negotiations. 
Then if we are making it and a meeting of 
heads of state would complete it or would 
materially advance it, then it would seem to 
me that every head of state would want to go. 

Q. Mr. President, have you received any 
Indication from the neutralist countries, 
particularly India, whether or not they 
would send foreign ministers or heads of 
state to the March i8th meeting? 

THE PRESIDENT. No. I dou't know what 
the decision will be of the heads of the other 



governments to which Mr. Khrushchev ad- 
dressed his letter. 

[3.] Q. Mr. President, our Labor Depart- 
ment estimates that approximately 1.8 mil- 
lion persons holding jobs are replaced every 
year by machines. How urgent do you view 
this problem — ^automation? 

THE PRESIDENT. Well, it is a fact that we 
have to find, over a lo-year period, 25,000 
new jobs every week to take care of those 
who are displaced by machines and those 
who are coming into the labor market, so 
that this places a major burden upon our 
economy and on our society, and it's one to 
which we will have to give a good deal of 
attention in the next decade. I regard it as 
a very serious problem. If our economy is 
moving forward, we can absorb this 1,800,- 
000, even though in particular industries we 
may get special structural unemployment. 
We've seen that in steel, we've seen it in coal, 
we may see it in other industries. But if our 
economy is progressing as we hope it will, 
then we can absorb a good many of these 
men and women. But I regard it as the 
major domestic challenge, really, of the 
sixties, to maintain full employment at a 
time when automation, of course, is replac- 
ing men. 

[4.] Q. Mr. President, do you agree with 
the view attributed to Ambassador Beam 
that any arms agreement the West reaches 
with Russia must ultimately include Red 
China to have real value? 

THE PRESIDENT. Yes, I would think there 
would have to be an agreement that would 
cover the world, if it is going to be valuable. 

Q. Mr. President, you have indicated you 
would like some priority to the nuclear test 
ban at the meetings that open on March 14. 
Would the United States be willing to stand 
by the draft treaty of last April, that was laid 
before the Soviet Union then? 

THE PRESIDENT. Well, I've Stated that we 
will — that it may be necessary to bring that 
treaty up to date. But basically we have 
indicated that we would sign an agreement 
which would have as its basis certainly the 
April proposal. There might be some new 



135 



[50] Feb. 14 



Public Papers of the Presidents 



additions that could be made to it, but that 
is the basic thesis on which we've been acting 
since last April. 

[5.] Q. Mr. President, in the past year 
you have had an experience with a whole 
variety of diplomacy and forms of diplo- 
macy. Could you tell us what your thoughts 
are now on the practice of summitry? 

THE PRESIDENT. Well, my view is the same 
as it has been, and that is that a summit is 
not a place to carry on negotiations which 
involve details, and that a summit should be 
a place where perhaps agreements which 
have been achieved at a lower level could be 
finally, officially approved by the heads of 
government, or if there was a major crisis 
which threatened to involve us all in a war, 
there might be a need for a summit. But 
my general view would be that we should 
climb to the summit after careful prepara- 
tion at the lower levels. 

[6.] Q. Mr. President, Nelson Rocke- 
feller on Sunday said that in his view the 
results of Punta del Este amounted to a 
diplomatic failure for the United States. Is 
there anything you would have to say on 
that? 

THE PRESIDENT. No, I disagree. I think 
that all of the countries of the hemisphere 
together made a finding that Cuba and the 
Communist system were not — should not be 
considered part of the inter-American sys- 
tem. And in my opinion that was a most 
important declaration, because it put the 
inter-American system squarely and unani- 
mously against Communist infiltration. So 
that I do have a different view of the results, 
even though there's a division, of course, 
among countries as there is bound to be, as to 
the best methods of containing the expansion 
of communism. But on the general opposi- 
tion to its expansion in this hemisphere, I 
think there was unanimity, and I regard that 
as most important. 

[7.] Q. Mr. President, some Congress- 
men are again critical of the fact that they 
don't know how much they're voting for 
CIA or, due to the fact that the requests are 
hidden in other budgets, even when they're 

136 



voting on CIA. Does this have any validity, 
do you think? 

THE PRESIDENT. The budget for the CIA 
is handled by the members of the Appro- 
priations Committee of the House and Sen- 
ate. It's bipartisan, and includes members 
who are the most senior and the most experi- 
enced in the area. They are fully informed. 
Quite obviously, there are some limitations 
on what we're able to reveal in the national 
interest, but in my judgment the budgetary 
procedures which have been followed in the 
past have combined congressional responsi- 
bility and also protection of our vital 
interests. 

[8.] Q. This being Valentine's Day, sir, 
do you think it might be a good idea if you 
would call Senator Strom Thurmond of 
South Carolina down to the White House 
for a heart-to-heart talk — [laughter'l — about 
the whole disagreement over the censorship 
of the military speeches and what he calls 
your defeatist foreign policy? 

THE PRESIDENT. Well, I think that that 
meeting should be probably prepared at a 
lower level — [laughter^ — and then we could 
have a 

[9.] Q. Mr. President, the Republican 
National Committee publication has said 
that you have been less than candid with 
the American people as to how deeply we 
are involved in Viet-Nam. Could you 
throw any more light on that? 

THE PRESIDENT. Yes, as you know, the 
United States for more than a decade has 
been assisting the government, the people of 
Viet-Nam, to maintain their independence. 
Way back in December 23, 1950, we signed 
a military assistance agreement with France 
and with Indochina which at that time in- 
cluded Viet-Nam, Laos, and Cambodia. 
We also signed in December of 195 1 an 
agreement directly with Viet-Nam. 

Now, in 1954, the Geneva agreements 
were signed and while we did not sign those 
agreements nevertheless Under Secretary 
Bedell Smith stated that he would view any 
renewal of the aggression in Viet-Nam in 
violation of the aforesaid agreements with 



John F. Kennedy, 7962 



Feb. 14 [50] 



grave concern, and as seriously threatening 
international peace and security. And at 
the time that the SEATO Pact was signed 
in 1954, September 8, though Viet-Nam was 
not a signatory it was a protocol state, and 
therefore this pact, which was approved by 
the Senate with only, I think, two against it, 
under article 4 stated that the United States 
recognized that aggression by means of 
armed attack against Viet-Nam would 
threaten our own peace and security. So 
since that time the United States has been 
assisting the Government of Viet-Nam to 
maintain its independence. It has had a 
military training mission there and it's also 
given extensive economic assistance. 

As you know, during the last 2 years that 
war has increased. The Vice President 
visited there last spring. The war became 
more intense every month; in fact, every 
week. The attack on the government by 
the Communist forces with assistance from 
the north became of greater and greater 
concern to the Government of Viet-Nam and 
the Government of the United States. We 
sent — I sent General Taylor there to make a 
review of the situation. The President of 
Viet-Nam asked us for additional assistance. 
We issued, as you remember, a white paper 
which detailed the support which the Viet 
Minh in the north were giving to this Com- 
munist insurgent movement and we have 
increased our assistance there. And we are 
supplying logistic assistance, transportation 
assistance, training, and we have a number 
of Americans who are taking part in that 
effort. 

We have discussed this matter — ^we dis- 
cussed it with the leadership of the Repub- 
licans and Democrats when we met in early 
January and informed them of what we were 
doing in Viet-Nam. Mr. Rusk has discussed 
it with the House and Senate Foreign Af- 
fairs Committee. Mr. McNamara has dis- 
cussed it with the Armed Services Commit- 
tee. The leadership on both sides, Republi- 
cans and the Democrats have been — ^we have 
explained to them our concern about what 
is happening there, and they have been re- 



sponsive, I think, and evidenced their con- 
cern. So that there's a long history of our 
effort to prevent Viet-Nam from falling un- 
der control of the Communists. That is 
what we are now attempting to do, and as 
the war has increased in scope, our assistance 
has increased as a result of the requests of 
the government. So that I think we 
should — as it's a matter of great importance, 
a matter of great sensitivity — my view has 
always been that the headquarters of both of 
our parties should really attempt to leave 
these matters to be discussed by responsible 
leaders on both sides, and in my opinion, 
we have had a very strong bipartisan con- 
sensus up till now, and I'm hopeful that it 
will continue in regard to the actions that 
we're taking. 

Q. Mr. President, do you feel that you 
have told the American people as much as 
can be told, because of the sensitivity of the 
subject? Is that right? 

THE PRESIDENT. I think I've just indicated 
what our role is. We have increased our 
assistance to the government — its logistics; 
we have not sent combat troops there, al- 
though the training missions that we have 
there have been instructed if they are fired 
upon to — they would of course, fire back, to 
protect themselves. But we have not sent 
combat troops in the generally understood 
sense of the word. We have increased our 
training mission, and we've increased our 
logistics support, and we are attempting to 
prevent a Communist takeover of Viet-Nam, 
which is in accordance with a policy which 
our Government has followed for the last — 
certainly since 1954, and even before then 
as I've indicated, and we are attempting to 
make all the information available that we 
can consistent with our security needs in the 
area. So that I feel that we are being as 
frank as we can be. I think what I have said 
to you is a description of our activity there. 

[10.] Q. Mr. President, a couple of weeks 
ago you told us of your hope of sending Mr. 
Eugene Black of the World Bank to India 
and Pakistan to see what could be done about 
the Kashmir dispute. Apparently Prime 



715-405 0—64- 



-13 



137 



[50] Feb. 14 



Public Papers of the Presidents 



Minister Nehru doesn't like that approach, 
or feels it should be done another way. Do 
you have any present plan to try to move 
this issue off dead center through some other 
approach? 

THE PRESIDENT. No, the United States did 
make an effort in this regard. We are giv- 
ing assistance to both countries. We would 
like to see the assistance used most effec- 
tively, and anything that increases the ten- 
sion between them or causes our aid to be 
turned into military channels as a result of 
tensions with each other makes our aid less 
effective, and therefore we suggested Mr. 
Black might be able to fill a useful role. 
The decision was made by the Indian Gov- 
ernment that that would not be appropriate 
at this time, and therefore — there is an elec- 
tion going on in India — I'm hopeful at the 
conclusion of the election that the two parties 
can make some progress in setding it among 
themselves, which is evidendy what they 
prefer at this time. 

[11.] Q. Mr. President, on the ques- 
tion — ^there have been persistent reports that 
the Attorney General is still going to visit 
the Soviet Union, before he returns from his 
trip abroad. Is there any such possibility? 

THE PRESmENT. No, UO. 

[12.] Q. Mr. President, on the basis of 
your talks with King Saud, can you tell us 
what the prospects are on the renewal of 
our base rights at Dhahran? 

THE PRESIDENT. Well, we've never re- 
quested the renewal of our base rights. It's 
not a matter which is at issue between the 
two governments. 
Q. You would expect it to lapse, then? 
THE PRESIDENT. Ycs, wc do, and we've 
made preparations for that, and that's what 
is the desire of both countries. So it has not 
been a subject, really, of discussion between 
us. 

[13.] Q. Mr. President, a few moments 
ago I believe you said that on the joint 
British-American draft agreement on dis- 
armament, that it should be brought up to 
date. I wonder if you could expand on 
that a litde. Are you speaking of an in- 



spection of preparations, specifically, for 
testing? 

THE PRESIDENT. Well, I think that my 
statement last week indicated our concern 
about that matter but — and I think that the 
positions that we would take at the confer- 
ence will be presented at that time. I don't 
mean to — I don't think anything particularly 
significant should be read into my response. 
We have stated that we will be ready to sign 
an agreement which provides for effective 
inspection and that is our position, and our 
position is based upon our proposal of last 
April. I'm not aware that there would be 
any significant change in that. If there is, 
it will be presented by the time the disarma- 
ment conference begins. 

[14.] Q. Mr. President, going back to 
the question of unemployment, some 13,000 
workers in one plant on Long Island are 
facing layoffs as a result of the Defense De- 
partment's decision to phase out one type of 
aircraft. Do you see any need for new steps 
to offset the economic impact of chang- 
ing defense requirements such as cases as 
this? 

THE PRESIDENT. I think that the figures of 
the possible layoffs are not — ^are overstated 
in your question, because to the best of my 
information they would be substantially, very 
substantially, less than the figure that you 
gave, and that would be our — it is a matter 
of considerable concern, however, that any- 
one will be laid off at that particular factory, 
and we are concerned about it. In fact, I 
think that your publisher wrote me about 
the matter last week. We even heard from 
the Congressman and we are concerned 
about seeing if we can maintain employment 
at the highest possible level at that plant. 
The difficulty, of course, comes because the 
particular plane that they are manufacturing 
is not being continued and that presents us 
with a difficult decision at a number of areas. 
But we are very conscious of the problem 
that's faced at that plant and we zxc going 
to try to see if we can maintain employment 
as high as it's possible for us to do so, even 
though some cut, but of a much less figure 



138 



John F. Kennedy, 1962 



Feb. 14 [50] 



than you mentioned, will perhaps inevitably 
come. 

[15.] Q. Mr. President, would you ap- 
prove a bill which would increase the size of 
the House by three members to solve a 
Massachusetts political problem? 

THE PRESIDENT. I would Wait. It seems to 
me it's a decision which the House will have 
to make, and after the House has acted, the 
Senate has acted, and I see what the bill is, 
Fd make a judgment about whether it'd be 
approved or not. 

[16.] Q. Mr. President, in the past it has 
been thought that the Russians might per- 
suade the Red Chinese to agree to any nu- 
clear test ban agreement that they might 
reach with the West. Now, it seems that the 
Russians' ability to persuade the Chinese to 
do very much is limited. How, then, do you 
see bringing the Red Chinese into any in- 
spection and control system? 

THE PRESIDENT. Well it's obviously very 
difficult, but there is really no use in having 
an inspection system agreed upon between, 
say, the Soviet Union and the United States 
and some other countries and then have 
another country — large — carrying on inten- 
sive armaments preparation. Quite obvious- 
ly, that would not protect our security. So 
this problem of bringing them in is a 
problem that must be considered before we 
would be able to have confidence in any 
disarmament agreement. 

I quite recognize the hazards and the diffi- 
culties of attempting to bring them in. But 
if we are making progress — and we have a 
good deal of hurdles to overcome before we 
come to this particular question — it is a ques- 
tion which waits for us before the end of the 
road is reached. And it would be a very 
difficult one, but one that we certainly should 
have in mind as we start on this confer- 
ence. 

[17.] Q. Mr. President, last week the 
Capitol Hill paper. Roll Call, published an 
interview with the leaders of the Soviet 
parliament, in which they urged establish- 
ment of ties and exchange of delegations be- 
tween the United States Congress and the 



Supreme Soviet of the U.S.S.R. What is 
your personal opinion about the desirability 
of such contacts? 

THE PRESIDENT. Well, I think that — I am 
very interested in any exchanges. I think 
the matter of whether the Congress should 
go is really a decision which the Congress 
themselves should reach. As far as my gen- 
eral interest, of course, I think that exchanges 
are very useful; but on the matter of the 
Congress itself, I think that it's a matter 
which the Congress can make a judgment 
on as to whether the national interest would 
be served by their going. 

[18.] Q. Mr. President, in view of the 
avowed solidarity of Communist Cuba with 
the Soviet Union, what is the present status 
of the Monroe Doctrine? 

THE PRESIDENT. Well, iu the first place, 
the — Mr. Salinger passed up a note saying 
that the OAS — the Organization of Ameri- 
can States — has just excluded Cuba from its 
deliberations, which I think indicates the 
unanimity of the hemisphere in regard to 
this. We are attempting to carry out our 
policy through the Organization of Ameri- 
can States, through the hemisphere. Quite 
obviously we have our own national interests 
to protect and our national security to pro- 
tect, which we will do. And therefore, we 
attempt to accommodate the policies in a 
whole variety of ways, in order to serve the 
national interest. 

[19.] Q. Sir, my question concerns the 
postponement of Colonel Glenn's flight 
today. This is the eighth time, I believe, 
that his flight has been postponed, and 
among other things there's been a consider- 
able ordeal on Colonel Glenn himself. 

THE PRESIDENT. That is correct. 

Q. Do you think, sir, that it would have 
been better, that it would be better even now, 
to, say, move up the date much deeper in 
the spring to a point where we would be 
more certain of the weather, instead of run- 
ning the risk of repeated delays? 

THE PRESIDENT. Well, It is uufortuuate. I 
know it strains Colonel Glenn. It has de- 
layed our program. It puts burdens on all 



139 



[50] Feb. 14 



Public Papers of the Presidents 



of those who must make these decisions as 
to whether the mission should go or not. I 
think it's been very unfortunate. But I 
have taken the position that the judgment 
of those on the spot should be final in regard 
to this mission, and FU continue to take that 
judgment. I think diat they would be 
reluctant to have it canceled for another 3 
or 4 months because it would slow our whole 
space program down at a time when we're 
making a concentrated effort in space. But 
I am quite aware of the strain it's caused 
everyone, and it's been a source of regret to 
everyone, but I think we ought to stick with 
the present group who are making the judg- 
ment, and they are hopeful still of having 
this flight take place in the next few days. 
And I'm going to follow their judgment in 
the matter, even though we've had bad luck. 

[20.] Q. Mr. President, what is your re- 
action to the proposal for a permanent sum- 
mer White House at Newport, R.I.? Have 
you reached a decision on that? 

THE PREsmENT. No. Mr. Udall — the pro- 
posal was made by, I think, Senator Pell and 
Senator Pastore, and it went to Mr. Udall, 
and I have not discussed the matter with 
him, and — though he is looking at the matter 
and is going to reply to them, I'm sure I will 
discuss it with him before a final decision 
is made. 

[21.] Q. Mr. President, there has been a 
notable lack of activity in the Senate on 
postal rate increases. There is some indica- 
tion this is tied to efforts to tie together rate 
increases with postal wage increases. Do 
you have any comment on this? 

THE PRESIDENT. I think wc ought to move 
ahead on the postal rate increase bill. I am 
hopeful that the Senate will. The House 
met its responsibilities; I'm hopeful the 
Senate will. Then we can take up the ques- 
tion of pay increases. The administration 
has some recommendations in that area, but 
I think it would be a mistake to so intimately 
link them. 

[22.] Q. Mr. President, could you evalu- 
ate the situation in Laos in light of continu- 
ing Communist attacks at Nam Tha? 



THE PRESIDENT. I think it's — as I've said, 
the cease-fire is becoming increasingly frayed. 
It's my understanding that Souvanna 
Phouma has an audience with the King, and 
I'm hopeful that progress, which has been 
very slow in the last 30 days can be made in 
attempting to agree on a government. Ob- 
viously every day that goes by increases the 
dangers. 

The Communist forces move forward. 
The government forces reinforce their people 
at the town. The town is very close to the 
Chinese border, so it's a very dangerous 
situation, because if the cease-fire should 
break down, we would have — be faced with 
the most serious decision. So I'm hopeful 
the cease-fire will continue to prevail, and 
that the various groups within the country 
will come to an agreement which will permit 
a neutral and independent Laos which has 
been the objective of our policy. 

[23.] Q. Sir, you have already stated that 
it is our national policy to carry out the 
deletions that the censors were carrying out 
in the Defense Department, and State, and 
you said you did not want to divulge the 
names of these censors because they were 
carrying out your policy. 

THE PRESIDENT. No, that isu't what I said. 
I said — the names have been revealed in the 
military and in the State Department of 
those who have been involved in reviewing 
speeches. 

Q. But you said you did not want to di- 
vulge the name of the specific censor who 
did the specific censoring. 

THE PRESIDENT. Yes, that is correct. 

Q. My question, sir, now is: Would you 
tell us why it has to be national policy to 
delete from the speeches of admirals and 
generals such phrases as "emerge victorious," 
"victorious," "beat the Communists," and 
phrases like that? 

THE PRESIDENT. Well, those particular 
phrases I am not familiar with and, there- 
fore, I don't know whether or not they were 
deleted. But I would say that if the— the 
purpose of the review is the same purpose 
that I stated a month ago, and that is to make 



140 



John F. Kennedy, 1962 



Feb. 14 [50] 



sure that governmental policy is — that the 
government speaks v^ith one voice. Now, 
to give an example of the kind of thing that 
makes these reviews necessary, there was a 
speech which was brought to the White 
House, I think on January 23, which was to 
be given by Admiral Burke. We had a new 
administration. Admiral Burke, himself, 
sent the speech over because he wanted to 
be sure that anything he said which would 
be interpreted as being the policy of the new 
administration was in accordance with the 
new administration. 

Admiral Burke was not aware that we 
were then carrying on negotiations for the 
release of the RB-47 pilots. So that it indi- 
cates how desirable it is. As I said, it also 
applies to me. I sent, as I said before, the 
State of the Union Address to both Defense 
and to the State Department so that they 
could see if there were any parts in it which 
they would want to comment on. 

The Admiral Burke example, I think, in- 
dicates clearly how desirable it is to have 
speeches gone over by those who represent 
the Secretary of State or the Secretary of 
Defense. Now there's no doubt that on 
some occasions those reviews may have been 
unwise. After all, 1200 speeches came in, 
in one year, and I would not attempt at all 
to defend every change that's been made. 
But I do state that they were acting in good 
faith in every occasion, even though their 
judgment may not be as good as other peo- 
ple's may be. 

[24.] Q. Mr. President, in the light of 
the apparent easing of tensions between the 
United States and the Soviet Union, par- 
ticularly with respect to Berlin, can you say 
with any precision now when the military 
reservists might be released? 

THE PRESIDENT. No. The crisis continues 
and the reservists — the need for reservists 
continues until there is an easing of the crisis 
or until we've been able to replace them with 
other men. As you know, we are building 
two new permanent divisions which will be 



ready in August — one division — and Sep- 
tember, the other division. And, of course, 
that will then present us with an entirely 
different situation in regard to their need. 
But until we have an easing of the crisis in 
Berlin or these two new divisions, the need 
for the reservists, of course, will continue. 

[25.] Q. Mr. President, a number of 
your rightwing critics say that your foreign 
policy is based on a no-win policy in the 
cold war. Would you address yourself to 
this charge? 

THE PRESIDENT. Well, of course, every 
American whoever they may be, wants the 
United States to be secure and at peace and 
they want the cause of freedom around the 
world to prevail. Quite obviously that is 
our national objective. And what we are 
anxious to do, of course, is protect our na- 
tional security, protect the freedom of the 
countries, permit what Thomas Jefferson 
called the disease of liberty to be caught in 
areas which are now held by Communists, 
and some areas where people are imprisoned. 
We want to do that, of course, without hav- 
ing a nuclear war. Now, if someone thinks 
we should have a nuclear war in order to 
win, I can inform them that there will not 
be winners in the next nuclear war, if there 
is one, and this country and other countries 
will suffer very heavy blows. So that we 
have to proceed with responsibility and with 
care in an age where the human race can 
obliterate itself. The objective of this ad- 
ministration, and I think the objective of the 
country, is to protect our security, keep the 
peace, protect our vital interests, make it 
possible for what we believe to be a system 
of government which is in accordance with 
the basic aspirations of people everywhere 
to ultimately prevail. And that is our objec- 
tive and that's the one that we shall continue. 

Reporter: Thank you, Mr. President. 

note: President Kennedy's twenty-fourth news con- 
ference was held in the State Department Audi- 
torium at II o'clock on Wednesday morning, Feb- 
ruary 14, 1962. 



141 



[51] Feb. 16 



Public Papers of the Presidents 



51 Remarks to a Group of Visiting Foreign Educators. 
February 16, 1962 



Ladies and gentlemen: 

I want to say how proud we have been 
that you chose to come to this country to 
examine our educational system, and I am 
sure that you taught us during your visit 
here more than you learned. 

There is, I know, a great tendency in every 
country, including my own, to consider edu- 
cation important but perhaps not so vital. 
We are so concerned in so many parts of the 
world with the problems that are coming 
today, next year, and the year after — and it 
does take 5 or lo or 15 years to educate a boy 
or girl — and therefore there is a tendency 
to concentrate available resources on the 
problems we face now, and perhaps ignore 
what the potentialities and capabilities will 
be of our people 10 or 15 years from now. 

Thomas Jefferson once said that if you 
expect a people to be ignorant and free you 
expect what never was and never will be. 
And from the beginning of this country, in 
order to maintain a very difficult discipline 
which is self-government, we have placed a 
major emphasis on education. 

My own feeling is, we have to do better — 
not only in quantity but also in quality, and 
I am hopeful that we can develop in this 
country a cult of excellence in regard to edu- 
cation and intellectual development, which 
will make this country more equipped to 
meet its problems. What is true of us I'm 
sure is true of you. In some of your coun- 



tries your problems are entirely different, 
and that is, making it possible for, in the 
mass, to educate great numbers of your peo- 
ple who today do not have that advantage, 
and also making sure that at the higher level 
we can train and then usefully employ men 
and women to serve not only their own in- 
terests but that of their country. 

I want you to know we are very proud to 
have you here. Our educational system has 
represented the devoted efforts of our citi- 
zenry, but I think we can always do better. 
And perhaps by your presence here, and 
your questions, and your concerns, you have 
been able to stimulate us to move more for- 
ward along what I consider to be the most 
vital function of society: educating our peo- 
ple — ^making it possible for them to realize 
their potentials, and by serving their own 
personalities and development, serving the 
national interest. 

So we're glad to see you and we hope that 
when you go home you will be able to com- 
municate to them not only things that you 
may have liked here, or disliked, but also 
the sense of a people desiring to improve 
themselves and their country. 

Thank you. 

note: The President spoke at 10 a.m. in the Rose 
Garden at the White House. The 325 educators 
from 62 foreign countries and territories were com- 
pleting a 6-month stay in the United States under 
the educational program of the Department of State. 



52 Message to President Kekkonen of Finland on the Occasion 
of His Reelection. February 17, 1962 

[ Released February 17, 1962. Dated February 16, 1962 ] 



Dear Mr, President: 

I congratulate you on your re-election as 
President of the Republic of Finland. It is 
my sincere v^ish and that of the people of the 
United States that you will enjoy a successful 
term of office. I look back with satisfaction 



upon your visit to the United States, which 
did much to reinforce the traditional bonds 
of friendship between our two nations. May 
that friendship flourish and be strengthened 
still further during your presidency in these 
challenging years. 



142 



John F. Kennedy, 7962 



Feb. 19 [53] 



Please accept my warm greetings and best 
wishes. 

Sincerely, 

John F. Kennedy 



note: President Kekkonen visited the United States 
late in 1961 (see 1961 volume, this series, Items 421, 
422, 424, and 451). 



53 Letter to the President of the Senate and to the Speaker of the 
House Transmitting a Proposed Stand-By Capital Improvements 
Act. February 19, 1962 

our defenses against future economic fluctua- 
tions, with a view to benefiting from the 
lessons of the last recession and those that 
preceded it. 

I am transmitting with this letter a draft 
bill — ^the Stand-by Capital Improvements 
Act of 1962 — ^which is designed to provide 
the Federal Government with an invaluable 
anti-recession tool. This proposal would 
provide stand-by authority to the President 
to initiate a temporary expansion in Federal 
and Federally-aided public works programs, 
and to make Federal grants and loans for 
State and local capital improvements, when- 
ever unemployment rises sharply and the 
standard indicators of economic distress re- 
veal that extraordinary action is required to 
reverse a serious economic decline. 

Recognizing the desire of the Congress to 
set the most precise guidelines for this kind 
of administrative action, the bill permits this 
stand-by authority to be exercised only when 
"triggered" by a formula suggested after the 
most careful consideration and reference to 
past unemployment statistics. This for- 
mula — ^which would have signalled, at a date 
early enough to make action helpful, each 
recession our Nation has suffered since 
World War II but would not have resulted 
in any false recession warnings — ^provides 
that the program would become operative 
when seasonally adjusted unemployment has 
risen in 3 out of 4, or 4 out of 6 consecutive 
months by a total of at least one percentage 
point, and after a determination by the Pres- 
ident (in case this has resulted from a major 
strike or other special factor) that use of the 
stand-by authority is necessary to achieve 



Dear Mr, : 

All thoughtful citizens agree on the obvi- 
ous desirability of avoiding or lessening the 
repeated downward turns in our economy 
which diminish both national strength and 
individual opportunity. Equally obvious is 
the importance of the Federal Government's 
role and responsibility — as an employer, a 
consumer, a source of credit, an example to 
State and local governments and a stimulus 
to the rest of the economy. This general 
responsibility was recognized by the Con- 
gress in the Employment Act of 1946; and it 
has been specifically exercised by a variety of 
Congressional actions and expenditure au- 
thorizations in the recessions which have 
continued to plague us since the enactment 
of that landmark legislation. 

Experience has shown that the timing of 
these Federal actions, both Executive and 
Congressional, can make a substantial differ- 
ence in the severity and duration of any 
particular recession. The authorization or 
acceleration of special programs or expendi- 
tures — including those for capital improve- 
ments or community facilities — imple- 
mented only after the normal legislative 
processes, may be too late to achieve an 
ameliorating effect on the recession sufficient 
to justify the increase in budget expendi- 
tures. 

Despite the large number of people cur- 
rently unemployed — z. problem this Admin- 
istration is attempting to meet through 
legislative proposals now before the Con- 
gress — ^recovery from the 1960-61 recession 
is proceeding in a satisfactory manner. This 
is, therefore, an appropriate time to prepare 



143 



[53] Feb. 19 



Public Papers of the Presidents 



the objectives of the Employment Act of 
1946. 

This $2 billion emergency program would, 
once put into effect, (i) permit a $750 mil- 
lion increase in direct Federal expenditures 
for projects previously authorized by law 
including resource, conservation and other 
Federal public works; (2) authorize $750 
million matching grants to State and local 
governments for capital improvement pro- 
grams; (3) authorize a $250 million loan 
program to State and local governments 
otherwise unable to finance their share of 
the costs of projects for which Federal grants 
are authorized; and (4) provide an addi- 
tional $250 million to be allocated to each 
of the preceding three programs as circum- 
stances warrant. All of these projects must 
meet essential public needs, must be capable 
of early initiation and of completion within 
12 months, must contribute significandy to 
reducing unemployment, and must not 
merely replace existing public expendi- 
tures. 

Virtually every community in the Nation 
has a backlog of needed capital improvement 
projects. Certainly that is true of the Fed- 
eral Government. An acceleration of these 
projects — all worthwhile in their own 



right — ^is a wise and proper method of in- 
creasing employment and expenditures at 
times when such action is urgendy needed 
to help stabilize our economy. 

Also enclosed is a section-by-section analy- 
sis of the proposed bill, prepared by the 
Housing and Home Finance Agency. A 
letter identical to this one is being trans- 
mitted today to the Speaker (President of 
the Senate). 

As I pointed out in my State of the Union 
address last month, the time to repair the 
roof is when the sun is shining. I urge the 
Congress to give prompt attention to this 
vital legislation, as insurance against a rainy 
day that we can hope will not recur, but 
which experience teaches us we must be 
prepared to meet. 
Sincerely, 

John F. Kennedy 

note: This is the text of identical letters addressed 
to the Honorable Lyndon B. Johnson, President of 
the Senate, and to the Honorable John W. Mc- 
Cormack, Speaker of the House of Representatives. 

Later, on March 26, the President amended the 
proposal (see Item 11 1). 

For the President's remarks upon signing the 
Public Works Acceleration Act of 1962, see 
Item 380. 



54 Statement by the President Upon Meeting With Labor Minister 
Franco Montoro of Brazil. February 19, 1962 



MR. MINISTER, on this occasion of your 
visit to the United States I want to extend 
through you my greetings and best wishes 
to the leaders and members of the demo- 
cratic trade union movement of Brazil. 

For many years the workers of Brazil have 
played an important and prominent role in 
the international labor organizations of the 
free world. I want to congratulate them and 
to express my confidence that they will con- 
tinue to contribute their strength and their 



knowledge to the free labor movement. 
The contribution of free labor to the achieve- 
ment of our mutually held ideals and hopes 
is becoming daily more significant. 

Under the Alliance for Progress the demo- 
cratic labor movements of all our countries 
have an important part to play. By the com- 
bined effort of all sectors of our free society 
we shall reach the goal of a better life in 
freedom and dignity. 



144 



John F. Kennedy, 7962 



Feb. 20 [55] 



55 Special Message to the Congress on Federal Pay Reform. 
February 20, 1962 



To the Congress of the United States: 

The success of this Government, and thus 
the success of our Nation, depend in the last 
analysis upon the quality of our career serv- 
ices. The legislation enacted by the Con- 
gress, as well as the decisions made by me 
and the Department and Agency heads, must 
all be implemented by the career men and 
w^omen in the Federal service. In foreign 
aflairs, national defense, science and tech- 
nology, and a host of other fields, they face 
unprecedented problems of unprecedented 
importance and perplexity. We are all de- 
pendent on their sense of loyalty and respon- 
sibility as well as their competence and 
energy; and just as they have responsibilities 
to the Government, so does the Government 
have obligations to them. 

We properly establish high standards for 
our public servants. We investigate their 
character and associations before considering 
them for employment. We hire them only 
after they have passed difficult examinations. 
We require them to abide by rigorous stand- 
ards of conduct and ethics. We demand 
consistendy high performance from them on 
the job. Accordingly, the salaries for the 
services they perform should be fixed under 
well-understood and objective standards, 
high enough to attract and retain competent 
personnel, sufficiendy flexible to motivate 
initiative and industry, and comparable with 
the salaries received by their counterparts in 
private life. To pay more than this is to be 
unfair to the taxpayers — to pay less is to 
degrade the public service and endanger our 
national security. 

Unfortunately these basic standards for 
Federal salary systems are not met today. 
Too many Federal employees are underpaid 
in proportion to their responsibilities. Too 
many receive smaller salaries than are paid 
by many private industries, and even by 
many state and local governments, for less 
responsible work. Too many top-grade or 



supervisory Federal employees are paid little 
more, and sometimes even less, than their 
subordinates. Too many key career em- 
ployees are unable to aflord continued public 
service. 

Existing statutory Federal pay structures 
cannot be justified as sound and equitable, 
either internally or externally. Internally, 
salaries between various levels of work 
should be enough to provide an incentive to 
undertake more responsible duties and to 
represent, dollar-wise, fair differences in 
work requirements. Over the years, piece- 
meal statutory revisions — with primary em- 
phasis on bringing the lower pay levels 
abreast of changes in the cost of living — 
have severely compressed the spread between 
the top and bottom salaries. The 8.8 to i 
and 12 to I salary ratios between the highest 
and lowest Classification Act and Postal 
Field Service grades existing prior to World 
War II have shrunk to ratios of less than 
6 to I, making it impossible to offer pay in- 
creases consistent with the added responsi- 
bilities of grade to grade promotion, or to 
offer an appropriate range of incentives 
within a particular grade. There is little 
consistency or logic in the salary differences 
between existing grade levels. And em- 
ployees paid under a wage board system, 
with wages based on the prevailing rates in 
industry, are frequently paid more than their 
supervisors whose salaries are fixed by the 
more rigid and less logical provisions of the 
Classification Act. 

Externally, except for employees paid 
under wage board systems. Federal salaries 
generally do not compare favorably and 
cannot compete successfully with private in- 
dustry. Every objective survey has demon- 
strated that salaried Government employees 
at almost every work level receive less com- 
pensation, on a national average basis, 
than private employees performing similar 
work — and the greater the level of difficulty 



145 



[55] Feb. 20 



Public Papers of the Presidents 



and responsibility, the greater the gap be- 
tween Federal and private pay. A Federal 
employee beginning a professional or ad- 
ministrative career can look forward to a 
maximum salary increase of no more than 
four and one quarter times his entrance 
salary, whereas his counterpart in private in- 
dustry can look forward to an increase of 
six or seven times his beginning salary. 
Moreover, the Federal employee's top salary, 
if he stays to reach it, will be less than half 
that of his private enterprise counterpart. 

Even state and local governments have 
passed the Federal Government. The head 
of a Federal Cabinet Department receives 
less than the head of a New York State De- 
partment — less than the average salary paid 
to the superintendents of schools in cities 
over 500,000 population. The highest paid 
Federal employees under the Classification 
Act would obtain higher salaries if they were 
working in the state career service in Geor- 
gia, Ohio, New York, Pennsylvania, Illinois, 
Michigan or California, for example — or for 
the cities of St. Louis, Denver, Detroit, San 
Francisco, Los Angeles and Philadelphia. 

The difficulty has been the lack of both an 
accepted objective standard for determining 
Federal Salary levels and a consistent pro- 
cedure for review and adjustment. The 
result has been a steady attrition of valued 
employees, an inability to attract many top 
quality college graduates and, in the long 
run, a waste of Federal funds — discouraging 
the initiative, efficiency and dedication that 
accompany recognition and stature, and re- 
quiring enormous expenditures each year to 
recruit and train new replacements for em- 
ployees who leave the service for reasons of 
inadequate pay. We can no longer defer the 
necessary corrective measures or continue the 
existing lack of standards; and recent studies 
and measurement techniques now make 
possible the kind of wholly new approach 
that common sense requires. 

A FEDERAL PAY REFORM PROGRAM 

I am transmitting to the Congress with 
this message legislation designed to reform 



the major statutory salary systems of the 
Federal Government, benefitting all of the 
1,640,000 employees throughout the world 
who are paid under the various Federal 
statutory pay plans — the Classification Act, 
the Postal Field Service Compensation Act, 
the Foreign Service Act, and the Medicine 
and Surgery Salary System of the Veterans 
Administration. Although flat increases for 
lower-paid workers are included as a matter 
of equity, the essence of this bill's objectives 
is Federal pay reform, not simply a Federal 
pay raise. Where pay raises result from the 
establishment of objective pay standards, 
they are primarily a reflection of the extent 
to which Federal salaries have lagged behind 
the national economy. 
This proposal has two principal features: 
(i) It establishes a sound, objective and 
continuous standard for determining proper 
salary levels by following the concept of 
comparability — reasonable comparability 
with prevailing private enterprise salaries for 
the same levels of work insofar as this is 
possible, as determined from painstaking 
statistical surveys and careful job compari- 
sons; and 

(2) It establishes realistic and appropriate 
salary relationships both within and among 
the several statutory salary systems and each 
of their grade levels, by following the prin- 
ciple of equal pay for equal work, with 
distinctions in pay consistent with distinc- 
tions in responsibility and performance. 



COMPARABILITY 

Adoption of the principle of comparability 
will assure equity for the Federal employee 
with his equals throughout the national 
economy — enable the Government to com- 
pete fairly with private firms for qualified 
personnel — and provide at last a logical and 
factual standard for setting Federal salaries. 
Reflected in this single standard are such 
legitimate private enterprise pay considera- 
tions as cost of living, standard of living and 
productivity, to the same extent that those 



146 



John F. Kennedy, 7962 



Feb. 20 [55] 



factors are resolved into the "going rate" 
over bargaining tables and other salary 
determining processes in private enterprise 
throughout the country. 

The principle has a history of wide ac- 
ceptance. Within the Federal Government, 
it has been used for 100 years: first applied 
to Navy Yard workers, it is now applied to 
all Federal workers in trades and crafts, to 
employees of the Tennessee Valley Author- 
ity, and to work under Government con- 
tracts covered by the Walsh-Healy and 
Davis-Bacon Acts. Many state and local 
governments, as well as some other national 
governments (such as Canada and the 
United Kingdom) already rely on this prin- 
ciple. 

It should be noted in this regard that, in 
marked contrast to the unfavorable situation 
of salaried employees, the Federal pay prac- 
tices affecting over 660,000 workers in the 
skilled trades and crafts have functioned 
without serious conflict or confusion. Based 
on prevailing rates, and set on recommenda- 
tion of wage boards, their pay has been 
continuously maintained at levels that are 
fair from the viewpoint of the Government, 
the taxpayer and the employee. 

I have found no more sensible standard 
for determining Government salaries. The 
Advisory Panel on Federal Salary Systems, 
chaired by Mr. Clarence Randall, in its 
recent report ^ to me called it "not only 
equitable but valid and eminently desirable." 
The application of this principle permits the 
Government to meet its difficult personnel 
needs without paying more than is necessary 
or less than is equitable. It was not feasible 
in earlier years; but now the recently intro- 
duced annual survey of professional, admin- 
istrative, technical and clerical salaries con- 
ducted by the Bureau of Labor Statistics 
provides the objective comparative salary 



^ The report, in the form of a letter dated February 
2 and released by the White House on February 14, 
is printed in House "Hearings Before the Committee 
on Post Office and Civil Service, 87th Congress, 2d 
sess.. May 3-June 28, 1962,*' page 51 (Government 
Printing Office, 1962). 



data needed for setting Federal pay scales. 
Occupational rates paid by private employers 
at a given work level of difficulty, responsi- 
bility and required qualifications can be 
combined into a single national average pri- 
vate enterprise rate for work equivalent to a 
Classification Act grade. These Classifica- 
tion Act rates in turn can be used to establish 
rates for the corresponding grades in the 
specialized salary systems of the Postal Field 
Service, the Foreign Service and the Veter- 
ans Administration. 

INTERNAL ALIGNMENT 

The internal alignment principle rests on 
two basic concepts: equal pay for equal 
work, and distinctions in pay consistent with 
distinctions in work and performance. Al- 
though these concepts are stated in the pres- 
ent Classification Act and are implicit in the 
Postal Field Service Compensation Act, the 
regressive and flat percentage pay adjust- 
ments of the past seventeen years have 
gradually blotted out much of the meaning 
in the current pay differentials of all our 
salary systems. 

The pay schedules I am recommending 
will regularize and generally enlarge the dif- 
ferences in salaries between successive grade 
levels, recognizing more appropriately the 
differences in responsibility involved, and 
providing a more uniform (not less than 
10%) progression of salary levels between 
the entry rates of successive grades. This 
will furnish a greater incentive for em- 
ployees striving to prepare themselves for 
higher responsibilities. At the same time, 
these new schedules will make more mean- 
ingful the within-grade promotions for com- 
petent performance of duties, and will pro- 
vide better incentives for those who spend 
most of their careers within a single grade, 
by providing wider salary ranges (30% ex- 
cept for the top two grades) within each 
grade, more adequate and more numerous 
within-grade salary steps, and more flexible 
use of salary steps to recognize exceptional 
achievement. 



147 



[55] F^b. 20 



Public Papers of the Presidents 



Other provisions aimed at improving 
flexibility v^^ill (i) facilitate the adjustment 
of salaries to meet critical needs by compet- 
ing more equally w^ith private industry in 
areas or in occupations in which a shortage 
exists; (2) permit the assignment of posi- 
tions to the upper grades of the Classifica- 
tion Act on the basis of duties and responsi- 
bilities, instead of arbitrarily limiting the 
number of such positions; and (3) create 
new upper grades to bring within the salary 
provisions of the Classification Act all those 
with top administrative responsibilities who 
are not Cabinet or sub-Cabinet officers or 
heads of separate agencies. 

The new salary ranges would provide a 
30% range between the entry rate and the 
highest rate in the grade for most salaried 
employees under the Classification Act and 
a 40% range for the lower levels of the 
Postal Field Service. This is comparable 
to the private industry ranges, which vary 
between 30% and 50% for each position. 
The pay ranges in the lower levels of the 
Postal Field Service are somewhat broader 
than those in the Classification Act, in 
recognition of the pattern of long service in 
such positions in the Postal Field Service 
and the need for incentives for sustained 
performance during the entire period of 
service. 

ANNUAL REVIEW 

To maintain the comparability principle, 
and to assure that other features are im- 
proved with experience, the bill provides that 
the President shall submit an annual report 
to Congress on the relationship of Federal 
salaries to those reported by the BLS for 
private enterprise, recommending whatever 
adjustments in salary schedules, structure, 
and policy he finds advisable. Where ad- 
justments are indicated, they would be ac- 
complished by revision of the Classification 
Act pay scales and by linkage of the other 
statutory systems to the Classification Act. 
A systematic annual review of this kind 
is essential to prevent Federal salary sched- 



ules from relapsing to their present condi- 
tions. 



THE UPPER GRADES 



Reform of the existing pay schedules 
necessarily involves immediate adjustment 
of salaries at almost all grade levels. But 
both our experience in the attrition of higher 
salaried men and women and all objective 
surveys have disclosed that the gap between 
private industry salaries and Government 
salaries is the widest at the upper levels. 
For example: the most recent Bureau of 
Labor Statistics survey shows that GS-14 
and GS-15 employees receive 20 percent 
less than those employees in private industry 
in comparable positions. A i960 survey of 
twenty-one large companies by the Civil 
Service Commission showed even more 
starding disparities at higher levels. Em- 
ployees in these companies performing func- 
tions comparable to those of a GS-18 re- 
ceived twice as high a salary as their Federal 
Government employed counterpart. 

Yet these are the very levels in the career 
service in which our need for quality is most 
acute — in which keen judgment, experience, 
and competence are at a premium. It is 
here that we face our most difficult person- 
nel problems. It is at these grades that we 
employ our top scientists, doctors, engineers, 
experts, and managers. Surely if so many 
state and city governments, as earlier cited, 
are willing to compete with private industry 
for this talent, the Federal Government, with 
its urgent missions to perform, can face up to 
this problem as well. As a practical matter, 
the full principle of comparability cannot be 
applied to the higher salary levels of govern- 
ment; but I consider adequate adjustment 
in our top executive and professional posi- 
tions to be the most vital single element of 
correction in this entire proposal. 

This reform of top career salaries will, of 
course, boost the pay of many civil servants 
to a level above that paid to their chiefs in 
Cabinet, sub-Cabinet and similar positions. 



148 



John F. Kennedy, 1962 



Feb. 20 [55] 



I recognize, however, that the salary level 
of these top executives has been quite prop- 
erly related in recent years with the salary 
level of the Congress; and, while both are, 
in my opinion, inadequate, it is neither 
customary nor appropriate to either provide 
such increases during current terms of office 
or specify Congressional increases in a Pres- 
idential message. Representatives of the 
Executive Branch stand ready, however, to 
cooperate with the Congress in determining 
what Executive and Congressional pay 
scales would be appropriate following the 
terms of the present incumbents. 

TIMING AND COST 

It is important for the Federal Govern- 
ment to adhere to its own precepts with re- 
spect to pay adjustments in the economy as 
a whole. Because of the salary lag that has 
developed over the past 17 years, full correc- 
tion of the accrued inequities in one year 
would be unwise, involving the substantial 
cost of more than $1 billion. This cost 
would come at a time when heavy budgetary 
demands have been placed upon us to meet 
great national security needs, and when the 
Government is urging private labor and 
management to exercise self-restraint to 
avoid the creation of inflationary pressures. 
Therefore, to reduce the impact in any one 
year on the affected $10 billion Federal pay- 
roll, where each i percent increase costs $100 
million, the plan that I recommend provides 
that the full 10 percent be distributed over 
three annual stages, beginning prospectively 
on January i, 1963. The increase scheduled 
to take effect next year is clearly well within 



the national average productivity increase 
(in the private sector) which has taken 
place since the last Federal pay increase in 
July of i960. 

The substantial costs necessarily involved 
in achieving this pay reform make it espe- 
cially important that these improvements in 
our pay systems take absolute priority over 
general percentage or dollar increases of 
the kind we have seen in the past — ^increases 
which make litde if any contribution to 
efficiency or economy in Government. 

CONCLUSION 

As I stated in my Budget Message, the 
first requirement for efficiency and economy 
in Government is highly competent person- 
nel. I believe that enactment of this plan for 
sound salary administration is fundamental 
to the maintenance of a standard of excel- 
lence in the Federal service. It is my belief 
that this measure, if enacted, will constitute 
the most important revision and reform in 
Federal personnel legislation in more than a 
decade. It is the most important proposal to 
improve the Federal service which has been 
presented by this administration; and I be- 
lieve it is essential if we are to achieve and 
maintain proficiency in the Federal Govern- 
ment. If our civil servants are to fulfill with 
skill and devotion their obligations to the 
nation, the nation must fulfill its obligations 
to the career service. 

John F. Kennedy 

note: The draft bill was released with the Presi- 
dent's message. 

For the President's statement upon signing the 
Federal pay reform bill, see Item 448. 



149 



[56] Feb. 20 



Public Papers of the Presidents 



56 Remarks Following the Orbital Flight of Col. John H. Glenn, Jr. 
February 20, 1962 



I KNOW that I express the great happiness 
and thanksgiving of all of us that Colonel 
Glenn has completed his trip, and I know 
that this is particularly felt by Mrs. Glenn 
and their two children. 

A few days ago, Colonel Glenn came to 
the White House and visited me. And he 
is — as are the other astronauts — the kind of 
American of whom we are most proud. 

Some years ago, as a Marine pilot, he 
raced the sun across this country — and lost. 
And today he won. 

I also want to say a word for all those who 
participated with Colonel Glenn at Canav- 
eral. They faced many disappointments and 



delays — the burdens upon them were great — 
but they kept their heads and they made a 
judgment, and I think their judgment has 
been vindicated. 

We have a long way to go in the space 
race. We started late. But this is the new 
ocean, and I believe the United States must 
sail on it and be in a position second to none. 

Some months ago I said that I hoped every 
American would serve his country. Today 
Colonel Glenn served his, and we all express 
our thanks to him. 

note: The President spoke at 3:27 p.m. on the 
South Lawn at the White House. 



57 Telephone Conversation With Colonel Glenn Aboard the 
U.S.S. Noa. February 20, 1962 



THE PRESIDENT. Hello.'^ 

Colonel Glenn: Hello, sir. 

THE PRESIDENT. Colonel? 

Colonel Glenn: This is Colonel Glenn. 

THE PRESIDENT. Listen, Colonel, we are 
really proud of you, and I must say you did 
a wonderful job. 

Colonel Glenn: Thanks, Mr. President. 

THE PRESIDENT. We are glad you got down 
in very good shape. I have just been watch- 
ing your father and mother on television, 
and they seemed very happy. 



Colonel Glenn: It was a wonderful trip — 
almost unbelievable, thinking back on it 
right now. But it was really tremendous. 

THE PRESIDENT. Well, I am coming down 
to Canaveral on Friday, and hope you will 
come up to Washington on Monday or Tues- 
day, and we will be looking forward to see- 
ing you there. 

Colonel Glenn: Fine. I will certainly look 
forward to it. 

note: The President spoke from his oflSce at the 
White House at 4:10 p.m. 



58 Remarks Upon Receiving a Progress Report on Area 
Redevelopment in Southern Illinois. February 21, 1962 



I AM PLEASED to receive the report of the 
Governor of Illinois and the Members of the 
Illinois congressional delegation on the 
heartening progress being made in the south- 
ern section of Illinois to solve the difficult 
economic problems that have beset that area 
for such a long period of time. 



The first bill proposed by my administra- 
tion (S. i) represented an effort to marshal 
the efforts of Federal, State, and local gov- 
ernments to bring new hope and more im- 
portantly new jobs to those many sections 
of the country which had failed to share 
in the Nation's general economic growth and 



150 



John F. Kennedy, 7962 



Feb. 21 [59] 



prosperity. The results of the joint effort in 
Illinois provide eloquent justification for the 
program and demonstrate that renewed 
enthusiasm and combined efforts can indeed 
make the difference in any particular area. 
I should note too that the Area Redevelop- 
ment Administration has demonstrated 
through its role in bringing together the 
various Federal departments and agencies 
as well as local and State authorities that it 
can perform the tasks assigned to it by the 
Congress. As important as the new spirit 
of southern Illinois is to that area it is even 
more significant as a source of encourage- 



ment to other regions anxious to restore 
economic vitality and vigor to their section 
of the country. 

note: The President spoke at ii a.m. in his office 
at the White House. In his opening remarks he 
referred to Governor Otto Kerner, U.S. Senator 
Paul H. Douglas, and U.S. Representatives Sidney 
R. Yates, Kenneth J. Gray, George E. Shipley, Peter 
F. Mack, Jr., and Melvin Price, all of lUinois, w^ho 
with William L. Batt, Jr., Administrator, Area Re- 
development Administration, and John E. Home, 
Administrator, Small Business Administration, met 
with the President to discuss area redevelopment 
projects in southern Illinois. 



59 The President's News Conference of 
February 21, 1962 



THE PRESIDENT, [i.] I havc oue Statement. 
It is increasingly clear that the impact of 
Colonel Glenn's magnificent achievement 
yesterday goes far beyond our own time and 
our own country. The success of this flight, 
the new knowledge it will give us, and the 
new steps which can now be undertaken, will 
aflect life on this planet for many years to 
come. 

This country has received more than 30 
messages of congratulations from other 
heads of state all over the world which 
recognize the global benefits of this extraor- 
dinary accomplishment. And I want to 
express my thanks to them and at the same 
time pay tribute to the international coopera- 
tion entailed in the successful operation of 
the Mercury tracking network, and express 
particular appreciation to those governments 
which participated in this international pro- 
gram by permitting the location of 18 such 
stations all around the world, including those 
in the Grand Canary Island, Nigeria, Zanzi- 
bar, Australia, Mexico, Bermuda, and the 
Canton Island in the Pacific. 

One of the messages that I received was 
from Chairman Khrushchev in the Soviet 
Union, suggesting that it would be bene- 
ficial to the advance of science if our coun- 



tries could work together in the exploration 
of space. I am replying to his message today, 
and I regard it as most encouraging, this 
proposal for international cooperation in 
space exploration, including specifically 
Soviet-American cooperation, which I spelled 
out in my State of the Union Message of last 
year, and in my address to the United 
Nations. You may recall that last year in 
January of 1961 in the State of the Union 
Address, I said, "Specifically, I now invite 
all nations — including the Soviet Union — to 
join with us in developing a weather pre- 
diction program, in a new communications 
satellite program and in preparation for 
probing the distant planets of Mars and 
Venus, probes which may someday unlock 
the deepest secrets of the universe." 

Previous to that, under the previous ad- 
ministration, many suggestions were made 
for international cooperation. On one oc- 
casion, the Vice President, then Senator 
Johnson, acting on behalf of President Eisen- 
hower, presented a proposal to the United 
Nations for the peaceful uses of outer space. 

We believe that when men reach beyond 
this planet they should leave their national 
differences behind them. All men will 
benefit, if we can invoke the wonders of 



151 



[59] Feb. 21 



Public Papers of the Presidents 



science instead of its terrors. We look for- 
ward to visiting with Colonel Glenn on Fri- 
day and welcoming him to Washington next 
Monday. 

It has been said that peace has her vic- 
tories as well as war, and I think all of us 
can take pride and satisfaction in this victory 
of technology and the human spirit. 

Q. Mr. President, can you tell us the na- 
ture of your actual response to Mr. Khrush- 
chev on this proposal? 

THE PRESIDENT. We will indicate in the 
response our desire that space be explored 
peacefully and that we will be glad, in the 
United Nations and in any other forum, to 
discuss how this can best be done so that 
this new ocean which I referred to yesterday 
may be a peaceful one. I think it's par- 
ticularly important now, before space be- 
comes devoted to the uses of war. So we 
will be prepared to discuss this matter, as I 
say, at the United Nations, or bilaterally, or 
any other way in which this common cause 
can be advanced. 

Q. Mr. President, on the same subject, do 
you think it would be wise, or can you con- 
ceive of a situation where we would have 
Russian observers at a space shot by this 
country without United States observers 
being allowed to view up close the Russian 
shot? 

THE PRESIDENT. Well, as you know, today 
we permit observers from all countries, 
members of the press from all countries, to 
come and watch our shots, and this has been 
a very open procedure, and one of the rea- 
sons why I think we all take satisfaction is 
because we took our chances out in the open, 
and our delays, which were well publicized 
and which may have caused some satisfac- 
tion to those who were not our well-wish- 
ers — it seems to me we have a double 
pleasure when it goes well. 

I do feel that, of course, if there's any co- 
operation it must be in the sense we are now 
discussing — it must be wholly bilateral, and 
I think that that, of course, would be one 
of the matters which we would discuss. 



Q. Mr. President, pursuing this subject 
even further, do you have any indication 
beyond the rather nebulous but hopeful re- 
marks of Mr. Khrushchev in his congratu- 
latory message that they are really willing to 
get down to cases in cooperation in these 
areas? 

One recalls that they did actually do some- 
thing in this respect in the International Geo- 
physical Year and I just wondered if between 
the time of the State of the Union Message 
and now any other tangible developments 
have come up beyond or in addition to his 
statement yesterday. 

THE PRESIDENT. No, we have seen no evi- 
dence that we would be able to confidendy 
expect in the last 12 months that this kind of 
cooperation would take place. But we, I 
might say, now have more chips on the table 
than we did some time ago. So perhaps the 
prospects are improving. 

[2.] Q. Mr. President, can you say 
whether up to this day the international 
scientific community or American scientists 
have received any data from the Soviet space 
flights of Titov and Gagarin? 

THE PRESIDENT. You mean other than those 
we might have picked up ourselves? 

Q. Yes, I mean through the international 
scientific community or any published 
works in the Soviet? 

THE PRESIDENT. Well, except for those that 
may have been published. I am not sure that 
we have. But before I give you a final an- 
swer perhaps I can ask Mr. Salinger and Mr. 
Hatcher to see if before the end of the press 
conference we could find out if there's been 
any more detailed information made avail- 
able to us or to anyone else, so I'll come back 
to that. 

[3.] Q. Mr. President, on a more local 
level, the Washington Daily News suggested 
today that since Colonel Glenn's achieve- 
ments illustrate the ultimate in physical and 
scientific discipline, that all the schoolkids 
and all the surrounding schools in Maryland, 
Virginia, and Washington be let out to wel- 
come him here Monday. Would you go 



152 



John F. Kennedy, 7962 



Feb. 21 [59] 



along with that suggestion? 

THE PRESIDENT. We always follow the 
Washington Daily News — [laughter] — ^and 
I believe that that is being done. In this 
particular area, Washington, D.C., and per- 
haps those that may be nearby in Maryland 
and Virginia, we would be glad if they 
followed the example. 

[4.] Q, Mr. President, there have been 
published reports to the effect that you 
have decided on a policy of disengagement 
in Laos after consultation with the Joint 
Chiefs of Staff. Could you clarify the situ- 
ation as you see it in Laos and South 
Viet-Nam? 

THE PRESIDENT. No, I would Say that our 
policy has been quite consistent since last 
April, when we agreed to the cease-fire, and 
we have, since that date, been attempting to 
organize a government and secure agree- 
ments from the parties who are involved 
internally and externally for a neutral and 
independent Laos. That is our objective, 
and we're continuing to work for it. 

Many months have passed, but that re- 
mains the star by which we guide our course 
there, and therefore, it would be improper 
at this time to talk about disengagement. 
We are engaged in the task of attempting to 
build a neutral and independent Laos, and 
it is to that end that we are directing our 
effort. And it would be, as I say, not 
precise to state that on the advice of the 
Joint Chiefs or for any other reason we are 
withdrawing our interest before that task 
has been accomplished. 

[5.] Q. Mr. President, Chancellor Ade- 
nauer is reported to have said while talking 
with the parliamentary group of the CDU 
that possibly the time has come to break off 
the Thompson-Gromyko talks and throw 
the Berlin question into a Big Four foreign 
ministers conference. Do you have any 
comment on this? 

THE PRESIDENT. Well, I know that there 
was a newspaper report based on, sup- 
posedly, what the Chancellor said in a con- 
versation, but I think there is some question 
as to whether that represented an accurate 



description of his views. I will say that 
that is not the impression that we have 
received, and, in fact, we have received an 
opposite impression, and that is that these 
probes, or these talks, while they have not 
been productive so far, nevertheless the 
subject is not exhausted, and we should 
continue. If, and Fve said this from the 
beginning, there is some evidence that by 
raising diem to a ministerial level that 
we would be more successful, then I think 
we ought to do it. But I do think that the 
conversations at this level now at least per- 
mit us to see whether there is any ground for 
a hopeful negotiation. I presume that what 
you mean by four powers would be the 
Soviet Union, the British, the French and 
ourselves, and not West Germany, the Brit- 
ish, French, and ourselves. As you know, 
General de Gaulle has been unwilling to 
have a four power foreign ministers con- 
ference, at least for France, until there is 
some evidence that such a conference might 
produce a useful result. So far the re- 
sults have been comparatively minor, or 
minuscule. 

[6.] Q. Mr. President, recalling your 
own interest in Algeria as a Senator, have 
you any comment on the cease-fire agree- 
ment that apparendy has now been reached 
between the rebels and the French 
Government? 

THE PRESIDENT. Fm hopeful that there is 
a cease-fire agreement, that it will permit 
an orderly and satisfactory solution, and 
we are, of course, most interested in the 
efforts that are being made to achieve that. 
I think that we should wait, as far as the 
United States is concerned, and watch the 
evolution with very concerned and friendly 
interest, which has been our policy for many 
months. 

[7.] Q. Mr. President, no doubt you are 
aware as to what Congress has done on the 
urban affairs proposal. Would you care to 
comment, sir, on what your next step would 
be regarding the plight of the cities, and 
also what the future might hold for Mr. 
Weaver? 



715-405 0—64- 



-14 



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[59] Feb. 21 



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THE PRESIDENT. Well, I think there's going 
to be an urban department some time. 
There isn't going to be one now, but there's 
going to be sooner or later. You have too 
large a percentage of our population living 
in the city, 70 to 75 to 80 percent. They 
face many problems. The mayors of the 
country and others w^ho are most concerned 
w^ith them have supported this proposal. 
We're going to have an urban department. 
It may not come this year, but in my opinion 
it will become as necessary and inevitable 
as the Department of Agriculture or HEW. 
Now, the difficulty, of course, is that many 
of those who do not live in urban areas are 
opposed to it. But if we in this country 
began to adopt the system that everyone who 
lives in a city area voted against those things 
which were of assistance to the farmer, and 
everybody who comes from a rural area 
voted against those policies which provided 
a better life for people in the city, and every- 
body who lived outside the Tennessee Valley 
voted against the Tennessee Valley Author- 
ity, and everyone who lived in the East 
voted against the development in the North- 
west, or the development of natural re- 
sources, this country would come to a 
grinding halt. 

So I am hopeful that after a longer look is 
taken at this proposal, and it's analyzed on 
its merits, that in my judgment the Congress 
of the United States will support an urban 
program. I believe it's vitally important, 
and I regret that Congress did not see fit 
to adopt it. I don't think it is so much the 
administration's loss as it's a loss for the 
city and the country. 

Now in regard to Dr. Weaver, he would 
have been admirably qualified as the head 
of the largest division which would have 
been included in the urban department. I 
see now that various people who opposed 
the urban department are now ready to 
support him for any Cabinet position he 
wishes. Defense, State, Treasury, or any- 
thing else. I consider him admirably quali- 



fied for this particular position because he's 
had long experience in it, and while I'm 
sure he is grateful for those good wishes for 
a Cabinet position where there is no vacancy, 
I think he feels that he would have been — 
that this country would have been better 
served to have voted for an urban depart- 
ment, and permitted him to continue his 
service in that capacity. Mr. Weaver will 
get along all right, but I think the question 
is, the people in the cities are the ones who 
have been defeated. 

[8.] Q. Mr. President, Soviet planes are 
continuing to fly through the Berlin air cor- 
ridor despite our objections. This comes at 
a time when the Soviets are increasingly 
critical about the alleged lack of progress in 
the Berlin talks in Moscow. Do you think 
this could be a pressure move by the Soviets 
to force us to come up with additional con- 
cessions in Moscow? 

THE PRESIDENT. I wouldu't attempt to 
draw any conclusions except to say that 
we've continued to fly the air routes into 
Berlin. And while those flights have not 
passed without some interference, I think 
the fact is that, of course, our rights in this 
area are being maintained. I'm hopeful that 
the Soviet Union and ourselves will be able, 
as I said from the beginning, to reach an 
accommodation, because obviously, any in- 
terference with these kinds of rights or 
rights which may be on the Autobahn, all 
these things carry with them hazards which 
none of us should welcome if we look to 
the possible end of the road. 

So I would not make any judgment. I 
merely hope that it will be possible for them 
to desist. 

[9.] In answer to Mr. Lisagor's ques- 
tions, it says some exchange between the 
Soviet and U.S. scientists of informal nature, 
but only medical information. There was 
no technical information in regard to the 
exchanges which have taken place in space. 

[10.] Q. Mr. President, could you give 
us any information on the present where- 



154 



John F. Kennedy, 7962 



Feb. 21 [59] 



abouts of U-2 pilot Powers and when he 
will be available for questioning by the press 
and Congress? 

THE PRESIDENT. There is, as you know, a 
board of inquiry which is examining whether 
Mr. Powers completed his contract. That 
board of inquiry is under the leadership of 
Judge Prettyman and represents outstand- 
ing citizens. Mr. Powers has been cooperat- 
ing fully. He will be available for the Con- 
gress — this inquiry will be completed by the 
middle of next week — and he would then 
be available to the Congress and to the 
press. And I must say that there is so far 
no evidence that he did not comply with his 
contract, but I think we could make a more 
precise judgment at the next press confer- 
ence, or a more final judgment, I would say. 

[11.] Q. In your view, Mr. President, is 
the South Vietnamese Government now 
carrying out the administrative reforms and 
creating the political conditions in which 
our increased assistance can be most 
effective? 

THE PRESIDENT. We're working with them 
to accomplish both of these objectives. And 
these objectives, I must say, are hard to carry 
out. This country's been in the struggle 
now for a number of years. It has not — it 
had not many skilled administrators when 
it got its independence in '54, and it had 
been at war for really, in a sense, with the 
Japanese occupation and the war with the 
French, for almost 15 years before that, so 
that it's a very diflficult assignment. It is 
a fact, however, that the gross national prod- 
uct, agricultural production, health, educa- 
tion, all these things materially increased in 
the last 6 years. But I think it's a matter 
for which the Vietnamese Government must 
be concerned about. We're prepared to 
offer every assistance we can in making that 
Government a more effective instrument for 
the people. 

[12.] Q. Mr. President, concern has 
been voiced by church leaders that wives 
and children of servicemen cannot accom- 



pany them to Europe and live with them. 
They are worried about moral implications, 
breakup of homes. Since the logistic re- 
quirements are no longer so urgent, it seems, 
is there a chance that this order may be 
changed soon? 

THE PRESIDENT. Well, as you know, most 
of the servicemen in Europe have their — 
who are married — have their families with 
them. There may be some who may be 
there for a more limited time who do not. 
In addition, of course, we're concerned about 
the gold flow which comes because of our 
troop commitments to Europe. I've said 
before that we spend $3 billion a year in 
maintaining our military forces around the 
world, and our bases. So if we are able to 
cut that somewhat, we shall do so. But to 
be more specific, most of the servicemen now 
in Europe have their families with them. 
There are some who do not, and the purpose 
of it, of course, is to limit this drain. 

Q. Mr. President, may I ask, was there 
not a memorandum on September 6 by the 
Defense Secretary forbidding the travel, 
though, for wives and children? 

THE PRESIDENT. We havc attempted in re- 
cent weeks and months to limit the number 
of families going overseas, and the only rea- 
son for it has been that we are losing dollars 
and gold, and we have to attempt to bring 
it into balance, and this has been one of the 
ways which we've considered. We have 
left the families over there which were al- 
ready there, but we're attempting to limit 
those that may go. This presents a hazard 
and a difficulty. But we're also very con- 
cerned about attempting to bring this flow 
into balance. And one of the ways is to try 
to cut that $3 billion to $2 billion or $1.9 
billion, and one of the ways in which we can 
do this is to attempt to limit family travel 
even though quite righdy it does present 
burdens to those involved. 

[13.] Q. Mr. President, I hope this isn't 
repetitious, but the United States Air Force 
has a great reputation in Western Europe 



155 



[59] Feb. 21 



Public Papers of the Presidents 



for clearing the sky of interference. And it 
has been reported out of Germany that you 
are weighing a decision about giving fighter 
escorts to the transports in and out of Berlin. 
Would you want to comment on that? 

THE PRESIDENT. No. Every plane that has 
set out has completed its mission. Every 
plane that has set out to fly from West Ger- 
many to West Berlin has arrived. 

[14.] Q. Mr. President, in considering 
the conditions under which the United States 
might refrain from a resumption of nuclear 
testing, I wonder if you would comment on 
the following suggestion contained in a re- 
cent letter to the editor of the New York 
Times: "Let both sides be allowed to main- 
tain preparations at the ready for immediate 
tests should the other side be detected setting 
off a surprise explosion." 

THE PRESIDENT. Well in the first place, 
that's part of the problem but not all of the 
problem. Part of the problem is the fact 
that the Soviet Union already had set off its 
tests, and — ^while the moratorium was in 
effect. And therefore we have to consider 
the effects upon our security of those tests. 
So that this suggestion does not meet the 
whole problem. 

Secondly, it's more difficult for us to main- 
tain ourselves at the ready to be prepared for 
tests. Some months have gone by since the 
Soviet tests. We have been making our 
preparations, as I have said. It takes many 
months, and we are concerned, that if we 
had another moratorium, that the Soviet 
Union would set a target date and be pre- 
pared and once again it would take us a 
period of time, perhaps not quite as long as 
this time, to carry out our own tests. 

I would say the greater concern is the effect 
of the Soviet tests and the extrapolations 
which can be gained from them in making 
the judgment as to whether we should carry 
out our tests. But I did read the letter in 
the Times, and at least it is a suggestion 
which I considered and which others con- 
sidered. 



[15.] Q. Mr. President, the Attorney 
General, your brother, has encountered evi- 
dence of a certain amount of hostility from 
student groups in various countries. Inas- 
much as this has happened before with other 
American visitors in the past administration, 
have you given any thought to what it is 
about us that students in particular seem to 
resent? [Laughter^ 

THE PRESIDENT. Well, ouc of the reasons 
that I was anxious to have the Attorney 
General make the trip was because of this 
very — rather curious factor, because you 
would feel that students, who are intellectu- 
ally curious, would be attracted by a free 
society which gives that intellectual curiosity 
a chance to develop, rather than a totalitarian 
society. And therefore, as you know, in the 
Attorney General's schedule, on nearly every 
occasion he has spoken at colleges and uni- 
versities, so I'm sure he will have some views 
of that. What has also interested me is the 
stereotype of the United States. It is a view 
of the United States almost 50 years old, and 
there is no doubt that it is a — Marxist ori- 
ented, and the — even in those cases where 
they may not be Communist. 

There are many explanations for it. In 
the first place these were colonial areas. 
They were held under subjugation in many 
cases by Western powers. The road of 
revolt was in many cases because the Com- 
munists were most active. They dominated 
the thinking. And I don't think that the 
students have caught up with the tremen- 
dous changes which have taken place in the 
United States in the last 50 years, or with the 
fallacies in the Marxist system which have 
become obvious in the last 20 years. 

In addition, I don't think we are able to 
emphasize those facets of American life 
which should be most attractive. I said 
yesterday that the University of California 
has more Nobel prize winners than the 
Soviet Union. They find in this country, 
and there are 40 or 50 of them, a climate 
which permits them to function most effec- 



156 



John F. Kennedy, 7962 



Feb. 21 [59] 



tively. And all of the cultural efforts here, 
all of the intellectual efforts, all our great 
schools and universities, these are the part 
of the story we ought to tell. 

I think the Attorney General attempted to 
communicate that, but of course, he is one 
voice. But he is attempting to — as you 
know, it's better to light a candle than curse 
the darkness. But I do agree with you that 
this is one of the most serious, and I think in 
many ways stimulating, problems we face — 
how to tell our stbry in a way that makes it 
new and exciting to young students and also 
have them examine objectively under the 
light of present circumstances the serious 
failures of the Marxist system, which can be 
told from the Wall to China. And I think 
that is our job, and I think the trip's been 
worthwhile for that purpose alone. 

[16.] Q. Mr. President, there has been 
considerable discussion regarding possible 
tax reduction. Would you tell us what the 
prospects are for an income tax cut within 
the next few years ? 

THE PRESIDENT. Well, you wcrc — I was 
set to answer that till you said "the next few 
years." I don't know what's going to be our 
economic situation in the next few years. 
Obviously, our present tax structure brings 
in, in good times, a tremendous revenue and 
if we do not have a recession and our present 
tax structure remains we would be in a posi- 
tion, obviously, where a tax reduction in a 
few years or in a period of time might be 
possible. The fact of the matter is that if 
we had not had the Berlin crisis, which re- 
quired a $3.5 billion additional expenditure 
last summer at the time when we were con- 
sidering our tax reform bill, it might have 
been possible to make changes in some of the 
categories. That was denied to us. 

Therefore, for the present there is not a 
chance of a tax reduction. The key will be 
whether we can have continued prosperity, 
and I therefore urge again that the Congress 
consider very carefully the proposals that 
we've made which we hope can keep the 



economy moving ahead. I regard that 
as a problem which should engage our best 
efforts of both parties. And we sent up a 
number of proposals on which at least we 
have our ideas: capital expenditures, the 
income tax for a period of time if we begin 
to have a slump, retraining, youth employ- 
ment, and all the rest. Now, if these aren't 
the proper means, I'd like to have other sug- 
gestions. But you can't look at '49 and '54 
and '58 and '60, and say that nothing needs 
to be done. So I would hope that those 
who do not agree — and there seem to be 
some — with our suggestions, I think they're 
obligated to come forward with some of 
their own. And I can assure them we will 
look at them most carefully, because if we 
have another recession in '63 and '64, it will 
affect our gold problems, it will affect our 
problem of unemployment, and all the rest. 
So I think it's a matter we all ought to be 
looking at and it's the kind of dialogue to 
which both of our parties ought to be ad- 
dressing themselves, rather than some of the 
rather ancient arguments which it seems to 
me were settled in the days of Franklin 
Roosevelt. 

[17.] Q. Mr. President, in view of your 
remarks on the military dependents' travel, 
is it correct to believe, then, that such travel 
will not be resumed until the gold flow 
situation improves? 

THE PRESIDENT. I would prefer to talk to 
the — have you talk with the Defense De- 
partment who can perhaps give us more up- 
to-date information than I'm able to do 
today. And I can perhaps supplement that 
after the press conference with Mr. Salinger. 

[18.] Q. Mr. President, if we could go 
back to the space question, we have been 
talking about a race in space, for example a 
race between the United States and Russia 
to get to the moon. Suppose now we should 
get this international cooperation that you've 
been talking about. What form would it 
take? Would it go so far, for example, as 
a joint United States-Russia mission to the 



157 



[59] Feb. 21 



Public Papers of the Presidents 



moon? Wp^d it go that far? Or just how 
would it work? 

THE PRESIDENT. Well, I think it would be 
premature to attempt to suggest, because 
all we have now, so far, is an indication of 
interest, and we know from long experience 
that it's more difficult to transform these 
general expressions into specific agreements. 
So I think that we should wait until we see 
what response we get from the Soviets to 
our answer to Mr. Khrushchev and then 
decide what it is we can do. We are spend- 
ing billions of dollars in space, and if it's 
possible to insure that space is peaceful and 
that it can be used for the benefit of every- 
one, then the United States must respond to 
any opportunity we have to insure that it's 
peaceful. But I can't give you an answer 
until we see whether the rain follows the 
warm wind in this case. 

[19.] Q. Mr. President, Secretary Gold- 
berg is understood to be considering a plan 
to permit 100 percent set-asides for labor 



surplus areas in selected civilian agency 
procurement contracts. If he indicates his 
approval of this plan, will you give yours in 
the form of an Executive order authorizing 
these increased set-asides? 

THE PRESIDENT. Well, I'd be very respon- 
sive to that, if we can do it. I think one 
of the great concerns — we have a rather 
limited amount of contracts, both defense 
and civilian, that go to areas of maximum 
unemployment. Pardy that's because there 
aren't sufficient plants in those areas. But 
in answer to your question, if Mr. Goldberg 
suggests it, I would be inclined to approve 
it, though I'd like to — I'd first have to exam- 
ine it in more detail than I have up to 
this time. 

Reporter: Thank you, Mr. President. 

note: President Kennedy's twenty-fifdi news con- 
ference was held in the State Department Audi- 
torium at 4 o'clock on Wednesday afternoon, 
February 21, 1962. 



60 Reply to Chairman Khrushchev's Message on the FUght of 
Colonel Glenn. February 21, 1962 



Dear Mr, Chairman: 

I thank you warmly for your message of 
congratulations on Colonel Glenn's success- 
ful space flight, and I welcome your state- 
ment that our countries should cooperate in 
the exploration of space. I have long held 
this same belief and indeed put it forward 
strongly in my first state of the Union 
message. 

We of course believe also in strong sup- 
port of the work of the United Nations in 
this field and we are cooperating directly 
with many other countries individually. 
But obviously special opportunities and re- 
sponsibilities fall to our two countries. 



I am instructing the appropriate officers 
of this Government to prepare new and 
concrete proposals for immediate projects of 
common action, and I hope that at a very 
early date our representatives may meet to 
discuss our ideas and yours in a spirit of 
practical cooperation 
Sincerely, 

John F. Kennedy 

note: Mr. Khrushchev's message, dated February 21, 
is published in the State Department Bulletin (vol. 
46, p. 411). For the proposals of joint action with 
the Soviet Union in the exploration of outer space, 
see Item 96. 



158 



John F. Kennedy, 7962 



Feb. 23 [61] 



61 Remarks at the Presentation of NASA's Distinguished Service 
Medal to Dr. Robert R. Gihuth and Col. John H. Glenn, Jr. 
February 23, 1962 



Mr, Vice President: 

As Lieutenant Shepard and Major Gris- 
som have learned, and as Colonel Glenn is 
now learning, the hazards of space flight 
only begin when the trip is over. And now 
that Colonel Glenn has been launched into 
public orbit, we are proud of him — as we are 
of all the astronauts and those who are con- 
nected with this great effort. 

Two weeks ago, when Colonel Glenn 
came by the White House, I asked him how 
he enjoyed the public attention, and he said 
that he wished that they were paying more 
attention to the scientific part of the voyage 
rather than to his wife's hair. My own 
feeling is that both are equally important, in 
the sense that we are proud of this trip be- 
cause of its scientific achievement and we 
are also proud of it because of the men and 
women that are involved in it. Our boost- 
ers may not be as large as some others, but 
the men and women are. 

So it is my great pleasure to speak on be- 
half of all of our fellow Americans in ex- 
pressing our pride and satisfaction to those 
so intimately involved in this effort. All 
of us remember a few dates in this century, 
and those of us who were very young re- 
member Colonel Lindbergh's flight, and 
Pearl Harbor, and the end of the war — ^and 
we remember the flight of Alan Shepard and 
Major Grissom, and w€ remember the flight 
of Colonel Glenn. 

I want to first express our thanks to Dr. 
Gilruth who headed die team which is rep- 
resented by all of you here today, who led 
the Mercury project, who has been inti- 
mately connected with it, who represents the 
kind of American genius for organization, 
particularly in the scientific field, upon 
which we put so much of our hopes. 

So, Doctor, if you will step forward, I 
would like to present you an award which is 



highly merited and which comes from us all. 
It says: 

"The President of the United States takes 
pleasure in awarding the National Aero- 
nautics and Space Administration's Distin- 
guished Service Medal to Robert R. Gilruth 
for services as set forth in the following 
Citation: For his distinguished leadership 
of the team of scientists and engineers that 
carried Project Mercury, the United States' 
initial manned space flight program, from 
its inception to the successful accomplish- 
ment of manned flight in orbit about the 
earth. The achievements of this Project 
have considerably enhanced the prestige of 
the United States and reflect the greatest 
credit on him and upon his country." 

It is signed by Mr. Webb and it is given 
to you by all of us here and around the 
country. 

Now, Colonel Glenn, will you step for- 
ward. Seventeen years ago today, a group 
of Marines put the American flag on Mount 
Suribachi, so it is very appropriate that today 
we decorate Colonel Glenn of the United 
States Marine Corps, and also realize that 
in the not too distant future a Marine or a 
Naval man or an Air Force man will put the 
American flag on the moon. 

I present this citation: 

"The President of the United States takes 
pleasure in awarding the National Aeronau- 
tics and Space Administration's Distin- 
guished Service Medal to Lieutenant Colonel 
John H. Glenn, Jr., United States Marine 
Corps, for services set forth in the following: 
For exceptionally meritorious service to the 
Government of the United States in a duty 
of great responsibility as the first American 
Astronaut to perform orbital flight. Lieu- 
tenant Colonel Glenn's orbital flight on 
February 20, 1962, made an outstanding 
contribution to the advancement of human 



159 



\6i] Feb. 23 



Public Papers of the Presidents 



knowledge of space technology and in 
demonstration of man's capabilities in space 
flight. 

"His performance was marked by his 
great professional knowledge, his skill as a 
test pilot, his unflinching courage, and his 
extraordinary ability to perform most diffi- 
cult tasks under conditions of great physical 
stress and personal danger. His perform- 
ance in fulfillment of this most dangerous 
assignment reflects the highest credit upon 
himself and the United States." 

Colonel, we appreciate what you have 
done! 

We have Mr. and Mrs. Glenn, who 
launched Colonel Glenn originally — they are 



right here in the front row — and also Mrs. 
Glenn and David and Lynn. 

And we would like to have you say a word 
to everybody. 

[Colonel Glenn expressed his appreciation 
for the award. He stressed the team e^ort 
in Project Mercury and said that the accom- 
plishment of the orbital flight represented 
the combined efforts of many thousands of 
people all over the country,^ 

note: The President spoke in Hangar S at Cape 
Canaveral, Fla. In his opening words he referred 
to Vice President Lyndon B. Johnson who had gone 
to Grand Turk Island, where Colonel Glenn had 
been staying since the orbit, to accompany him back 
to the United States. 



62 Message to Chairman Khrushchev Concerning the Forthcoming 
Disarmament Negotiations in Geneva. February 25, 1962 



Dear Mr, Chairman: 

I regret that in your message of Feb- 
ruary 21, you seem to challenge the motiva- 
tions of Prime Minister Macmilian and 
myself in making our proposal of Febru- 
ary 7 that the forthcoming Disarmament 
Conference open at the Foreign Minister 
level. I believe that there can be a legitimate 
difference of opinion on the most effective 
and orderly v^ay to make progress in the 
vitally important field of disarmament. 
You have presented your own views and I 
do not wish to imply that they are motivated 
by anything other than your own conviction 
that the way you suggest is the best way to 
proceed: However, I must say that even 
though I have given the most careful thought 
to the considerations you advance, I continue 
to hold to my view that the personal par- 
ticipation in Geneva by the Heads of Gov- 
ernment should be reserved until a later 
stage in the negotiations when certain pre- 
liminary work has been accomplished. 

Indeed some of the statements you make 
reinforce my view in this respect. Your 
discussion of the control problem, for ex- 
ample, is based, in my view, on a funda- 



mental misconception of the United States 
position that can probably best be clarified 
in the light of discussion of specific verifica- 
tion requirements for specific disarmament 
measures. It is not true, as you allege, that 
the United States is seeking to establish 
complete control over national armaments 
from the beginning of the disarmament 
process. Our position is a quite simple one 
and it is that whatever disarmament obliga- 
tions are undertaken must be subject to satis- 
factory verification. For example, if, as we 
have both proposed, there is an agreement 
to reduce the level of armed forces to a speci- 
fied- number, we must be able to ensure 
through proper verification mechanisms that 
this level is not exceeded. I do not propose 
here to discuss this subject at length. I wish 
merely to point out that this is the type of 
issue on which more work should be done 
before it can usefully be dealt with at a 
Heads of Government meeting. 

If it were not for the existence of the State- 
ment of Agreed Principles which was 
worked out so laboriously between repre- 
sentatives of our two countries last year, 
there might be greater force to your reason- 



160 



]ohn F. Kennedy, 7962 



Feb, 25 [62] 



ing that Heads of Government should meet 
at the outset to set directions for the negoti- 
ations. In my view the Statement of Agreed 
Principles constitutes just the type of frame- 
work which would be the most that could be 
expected at this point from a meeting of the 
Heads of Government. Since this has al- 
ready been done, I believe now we need to 
have our representatives do further explora- 
tory work of a more detailed nature. 

As I have said and as I now repeat, I think 
it is of the utmost importance that the Heads 
of Government of the major nuclear powers 
assume a personal responsibility for direct- 
ing their countries' participation in and fol- 
lowing the course of these negotiations. I 
can assure you that the Secretary of State 
would present my views with complete au- 
thority. Even so, I hope developments in 
the Conference and internationally would 
make it useful to arrange for the personal 
participation of the Heads of Government 
before June i. I do not, however, believe 
that this should be done at the outset and 
I must say frankly, Mr. Chairman, that I 
believe this view is well founded. I believe 
that to have such a meeting at this point 
would be to begin with the wrong end of 
the problem. The Heads of Government 
should meet to resolve explicit points of dis- 
agreement which might remain after the 
issues have been carefully explored and the 
largest possible measure of agreement has 
been worked out at the diplomatic level. 

I continue to hope that you will agree to 
the proposed procedure which was set forth 
in Prime Minister Macmillan's and my 
initial letter of February 7. I believe that 
the replies which have been made by other 
prospective participants to your messages 
indicate a general support for this approach 
and I trust that you will give a favorable 
response. 

I cannot conclude this letter without 
mentioning briefly the problem of nuclear 
testing. Since I assumed the Office of Pres- 
ident of the United States, the conclusion of 
a nuclear test agreement has been a primary 



objective of mine. The record of American 
participation in the negotiations on this sub- 
ject has demonstrated fully the creative 
effort we made to achieve agreement. It 
must be understood that in the absence of an 
agreement which provides satisfactory assur- 
ance that all States will abide by the obliga- 
tions they undertake, there is no real basis 
for securing a safe end to the competition 
in the development of nuclear weapons. It 
is strange for the Soviet Union, which first 
broke the truce on nuclear testing, now to 
characterize any resumption of testing by 
the United States as an aggressive act. 

It was resumption of testing by the Soviet 
Union which put this issue back into the 
context of the arms race and that conse- 
quentiy forced the United States to prepare 
to take such steps as may be necessary to 
insure its own security. Any such steps 
could not be characterized now as "aggres- 
sive acts." They would be a matter of pru- 
dent policy in the absence of the effectively 
controlled nuclear test agreement that we 
have so earnestly sought. 

In our February 7 message, the Prime 
Minister and I attempted to lay a further 
framework for the conduct of the negotia- 
tions. We believe that in a preliminary 
meeting among the Foreign Ministers of the 
United States, United Kingdom and USSR 
views could be exchanged and agreement 
reached on the three parallel approaches we 
suggested and on some of the procedural 
aspects which we might jointly recommend 
to guide the Committee's work. Such a dis- 
cussion, together with the Statement of 
Agreed Principles, could give a valuable 
direction and impetus to the Committee's 
work. 

Mr. Chairman, I think you agree that we 
must approach this meeting with utmost 
seriousness and dedication if we are to avoid 
a gradual drift to the same kind of aimless 
and propaganda-oriented talk which has 
characterized so much of past disarmament 
negotiations. This can be best achieved if 
we who are ultimately responsible for the 



161 



[62] Feb. 25 



Public Papers of the Presidents 



positions we take, and our chief diplomatic 
officials, concern ourselves direcdy, as we are 
now doing, with this subject. I believe we 
should consider most carefully as we proceed 
when and how our actual participation at 
the conference table could be of most benefit. 

John F. Kennedy 



note: Chairman Khrushchev's message of February 
21 is published in the Department of State Bulletin 
(vol. 46, p. 466). For the February 7 joint message 
of the President and Prime Minister Macmillan, see 
Item 42. 

The Statement of Agreed Principles is published 
in the Department of State Bulletin (vol. 45, p. 589). 



63 Remarks on the 20th Anniversary of the Voice of America. 



February 26, 1962 

OCCUPYING as I do a rather secondary 
status these days, I am very appreciative to 
you all for waiting. I think that this meet- 
ing is tied up with the common American 
interest in (Dolonel Glenn, and I feel that in 
addition to being dry, we are also contrib- 
uting a litde to telling the story of which 
he is a great part — ^as are Alan Shepard and 
the others. 

I was most anxious to come here per- 
sonally today, because I put such great 
importance in the work that you are doing. 
The Voice of America occupies, I believe, a 
key part in the story of American life. What 
we do here in this country, and what we are, 
what we want to be, represents really a 
great experiment in a most difficult kind of 
self-discipline, and that is the organization 
and maintenance and development of the 
progress of free government. And it is your 
task, as the executives and participants in 
the Voice of America, to tell that story 
around the world. 

This is an extremely difficult and sensitive 
task. On the one hand you are an arm of 
the Government and therefore an arm of 
the Nation, and it is your task to bring our 
story around the world in a way which 
serves to represent democracy and the 
United States in its most favorable light. 
But on the other hand, as part of the cause 
of freedom, and the arm of freedom, you arc 
obliged to tell our story in a truthful way, 
to tell it, as Oliver Cromwell said about 
his portrait, "Paint us with all our blemishes 
and warts, all those things about us that 
may not be so immediately attractive." 



We compete with other means of com- 
munication, of those who are our adver- 
saries who tell only the good stories. But 
the things that go bad in America, you must 
tell that also. And we hope that the bad 
and the good is sifted together by people 
of Judgment and discretion and taste and 
discrimination, that they will realize what 
we are trying to do here. 

This presents to you an almost impos- 
sible challenge, and it is a source of satis- 
faction to me that in the last 20 years you 
have met that challenge so well. I know 
that there are those who are always critical 
of the Voice, but I believe that over the years, 
faced with this very difficult challenge, far 
more difficult than that of an American 
editor or a newspaperman, or a commentator 
on an American radio or television station, 
you have been able to tell our story in a 
way which makes it believable and credible. 
And that is what I hope you will continue 
to do in the future. 

The first words that the Voice of America 
spoke were 20 years ago. They said, "The 
Voice of America speaks. Today America 
has been at war for 79 days. Daily at this 
time we shall speak to you about America 
and the war, and the news may be good or 
bad. We shall tell you the truth." And so 
you have, for 20 years — and so you shall 
for 20 years more. 

In 1946 the United Nations General As- 
sembly passed a resolution reading in part, 
"Freedom of information is a fundamental 
human right, and the touchstone of all the 
freedoms to which the United Nations is 



162 



John F. Kennedy, 7962 



Feb. 26 [63] 



consecrated." This is our touchstone as 
well. This is the code of the Voice of 
America. We welcome the views of others. 
We seek a free flow of information across 
national boundaries and oceans, across iron 
curtains and stone walls. We are not afraid 
to entrust the American people with un- 
pleasant facts, foreign ideas, alien philoso- 
phies, and competitive values. For a na- 
tion that is afraid to let its people judge the 
truth and falsehood in an open market is a 
nation that is afraid of its people. 

The Voice of America thus carries a 
heavy responsibility. Its burden of truth is 
not easy to bear. It must explain to a 
curious and suspicious world what we are. 
It must tell them of our basic beliefs. It 
must tell them of a country which is in 
some ways a rather old country — certainly 
old as republics go. And yet it must make 
our ideas alive and new and vital in the 
high competition which goes on around the 
world since the end of World War II. 

In the last 20 years the Voice of America 
and its parent organization have grown in 
strength and in stature, but in the next 20 
years our opportunities to tell our story will 
expand beyond belief. The advent of the 
communications satellite, the modernization 
of education of less-developed nations, the 
new wonders of electronics and technology, 
all these and other developments will give 
our generation an unprecedented oppor- 
tunity to tell our story. And we must not 
only be equal to the opportunity, but to the 
challenge as well. 

For in the next 20 years your problem 
and ours as a country, in telling our story, 
will grow more complex. The choices we 



present to the world will be more difficult, 
and for some the future will seem even 
more empty of hope and progress. The 
barrage upon truth will grow more constant, 
and some people cannot bear the responsi- 
bility of a free choice which goes with 
self-government. And finally, shrinking 
from choice, they turn to those who prevent 
them from choosing, and thus find in a 
kind of prison, a kind of security. 

We bdieve that people are capable of 
standing the burdens and the pressures 
which choice places upon them, and it is 
because of this strong conviction that this 
organization functions, and it is because 
there is this commitment to this view that 
you continue to serve in it. 

None of you are interested in serving in 
an agency which merely reflects a line which 
the Government from time to time may set 
down. You serve in it — and you all could 
serve in different agencies or in different 
parts of life — ^because you believe, I am 
sure, that this is a vital part of telling our 
story around the world. 

And as you tell it, it spreads. And as it 
spreads, not only is the security of the 
United States assisted, but the cause of 
freedom. 

So I salute you on your 20th birthday and 
say that in the next 20 years when these 
choices will become more vital to us, I be- 
lieve that the Voice of America will be 
fulfilling its function, as it did that first 
day when it committed itself to truth. 

Thank you. 

note: The President spoke to the Voice of America 
employees at 12:15 p.m. in the auditorium of the 
Department of Health, Education, and Welfare. 



163 



[64] Feb. 26 



Public Papers of the Presidents 



64 Letter to the President of the Senate and to the Speaker of the 
House Transmitting a Bill To Continue and Expand the Peace 
Corps. February 26, 1962 

In many instances Peace Corps Volunteers 
are working where no American has ever 
lived or even travelled. The enthusiasm 
with which they are received is perhaps best 
reflected in this statement on the Peace Corps 
by President Alberto Lleras Camargo of 
Colombia: ". . . the finest way in which the 
United States could prove to the humble 
people of this and other lands that the pri- 
mary purpose of its international aid pro- 
gram is to build a better life in all of the free 
world's villages and neighborhoods." 

The reception accorded the Peace Corps 
is underscored by the fact that every one of 
the twelve countries in which volunteers are 
now at work has requested additional volun- 
teers. In most cases the Peace Corps has 
been asked to triple and quadruple the num- 
ber of men and women already supplied. 
Nigeria, for example, has requested 400 ad- 
ditional teachers. 

Equally heartening has been the enthu- 
siasm for the Peace Corps in our own coun- 
try. More than 20,000 Americans have 
volunteered to serve — a convincing demon- 
stration that we have in this country an 
immense reservoir of dedicated men and 
women willing to express by their actions 
and convictions the highest values of our 
society. Although the average age is 24^4 
for men and 25 for women, many of the 
volunteers are in their thirties and forties — 
and three are in their sixties. Approxi- 
mately ^ are women — nurses, home econ- 
omists, social workers and teachers. These 
volunteers are from every part of the Nation 
and represent every ^ segment of American 
life. As an extra bonus to our own coun- 
try. Peace Corps graduates will constitute an 
invaluable addition to the very limited pool 
of trained manpower in our own country 
with this kind of constructive overseas ex- 
perience; and I have no doubt that many of 
them will go on to make still further con- 



Dear Mr, : 

The Peace Corps is now one year old. 
Twelve months ago I asserted that only 
through the most careful planning and nego- 
tiation could its success be assured. Today 
I am pleased to report to the Congress that 
its early successes have fulfilled expectations. 

Careful preparation and sound training 
have assured the selection of qualified men 
and women and minimized health and other 
hazards. Economy of operation has held 
actual expenditures for each volunteer re- 
cruited, selected, trained and supported over- 
seas to an admirably low level. Careful 
selection of administrative personnel, both 
at home and abroad, has resulted in maxi- 
mum efficiency with minimum staff. 

I am transmitting herewith, for the con- 
sideration of the Congress, legislation to 
enable continuation of the current Peace 
Corps program, and to make possible a fur- 
ther expansion of its work. This legislation 
will permit the Peace Corps to have 6,700 
volunteers in the field by June 30, 1963, 
compared to the maximum of 2,400 per- 
mitted under the present appropriation. 
While this number will still not permit us 
to meet all requests from foreign countries, 
it will enable us to make the most of an 
historic opportunity to achieve better under- 
standing among nations. 

By June 30th of this year there will be 
2,400 Peace Corps Volunteers in service or 
in training. Another 2,700 are scheduled to 
enter training in July or August of this year. 
But the overwhelming response to this pro- 
gram in actual operation abroad makes 
further expansion both necessary and desir- 
able. Volunteers have been welcomed with 
friendliness and aflection in every one of the 
villages, towns, schools, factories and hospi- 
tals to which they have gone to share their 
skills with the peoples of less developed 
nations. 



164 



John F. Kennedy, 1962 



Feb. 27 [65] 



tributions to their country in the Foreign 
Service and other posts. 

The Peace Corps has successfully weath- 
ered its experimental period, and has enjoyed 
widespread bi-partisan support. I urge 
prompt consideration of the legislation au- 
thorizing an increase in the authorization 
to 63.75 million dollars for Peace Corps pro- 
grams in fiscal year 1963. This legislation 
will also effect a small number of other 
changes designed to make it more effective. 



I urge the Congress to give prompt con- 
sideration and apprbval to this clearly justi- 
fied measure. 

Sincerely, 

John F. Kennedy 

note: This is the text of identical letters addressed 
to the Honorable Lyndon B. Johnson, President of 
the Senate, and to the Honorable John W. Mc- 
Cormack, Speaker of the House of Representatives. 
On April 27 the President approved an act provid- 
ing for an extension of the Peace Corps Act (Public 
Lav/ 87-442, 76 Stat. 62). 



65 Special Message to the Congress on National Health Needs. 
February 27, 1962 



To the Congress of the United States: 

The basic resource of a nation is its peo- 
ple. Its strength can be no greater than the 
health and vitality of its population. Pre- 
ventable sickness, disability and physical or 
mental incapacity are matters of both indi- 
vidual and national concern. 

We can take justifiable pride in our 
achievements in the field of medicine. We 
stand among the select company of nations 
for v^hom fear of the great epidemic plagues 
is long past; our life expectancy has already 
reached the biblical three score and ten; and, 
unlike so many less fortunate peoples of the 
world, we need not struggle for mere sur- 
vival. But measured against our capacity 
and capability in the fields of health and 
medical care, measured against the scope 
of the problems that remain and the oppor- 
tunities to be seized, this nation still falls far 
short of its responsibility. 

Many thousands needlessly sufler from 
infectious diseases for which preventive 
measures are available. We are still tenth 
among the nations of the world in our infant 
mortality rate. Prolonged and cosdy illness 
in later years robs too many of our older 
citizens of pride, purpose and savings. In 
many communities the treatment of the 
mentally ill and the mentally retarded is 
totally inadequate. And there are increas- 
ingly severe shortages of skilled personnel in 
all the vital health professions. 



Basically, health care is a responsibility of 
individuals and families, of communities and 
voluntary agencies, of local and state govern- 
ments. But the Federal Government shares 
this responsibility by providing leadership, 
guidance and support in areas of national 
concern. And the Congress last year recog- 
nized this responsibility in important ways. 

PROGRESS DURING 1 96 1 

Our states and communities have re- 
sponded quickly and with impressive vigor 
to the invitation to cooperate action extended 
by the Community Health Services and 
Facilities Act passed by the Congress and 
signed into law only four months ago. As 
a result, better care for the chronically ill and 
the aged will soon be available in many parts 
of the Nation, both inside and outside the 
hospitals and other institutions in this 
program. 

There is also visible progress in the effort 
to control water pollution, resulting from 
the expanded legislation passed by the Con- 
gress in 1 96 1. Last year construction was 
begun on more waste treatment plants than 
ever before in our history — 30 percent above 
the calendar year i960 level. 

There were, in addition, other important 
forward thrusts taken, with Federal help, in 
the protection of our nation's health. Med- 
ical research advanced at an accelerated pace. 



165 



[65] Feb. 27 



Public Papers of the Presidents 



We are now better equipped than ever be- 
fore to evaluate and deal with radiation 
perils. The incidence of polio has been 
reduced to the lowest levels ever recorded. 
We have engaged our most talented doctors 
and scientists in an intensified search for 
the cause and cure of cancer, heart disease, 
mental illness, mental retardation, environ- 
mental health problems and other serious 
health hazards. 

But, of the four basic improvements in 
the Federal health program I recommended 
to the Congress last year, two urgent needs — 
health insurance for the aged and assistance 
to education for the health professions — ^have 
not yet been met. The passage of time has 
only served to increase their urgency; and I 
repeat those requests today, along with other 
needed improvements. 

I. HEALTH INSURANCE FOR THE AGED 

Our social insurance system today guards 
against nearly every major financial setback: 
retirement, death, disability and unemploy- 
ment. But it does not protect our older 
citizens against the hardships of prolonged 
and expensive illness. Under our social se- 
curity system, a retired person receives cash 
benefits to help meet the basic cost of food, 
shelter and clothing — benefits to which he is 
entitled by reason of the contributions he 
made during his working years. They per- 
mit him to live in dignity and with inde- 
pendence — ^but only if a serious illness does 
not overtake him. 

For, compared to the rest of us, our older 
citizens go to the hospital more often — they 
have more days of illness — ^and their stays 
in the hospital are thus more cosdy. But 
both their income and the proportion of their 
hospital bill covered by private insurance 
are, in most cases, substantially lower than 
those of younger persons. 

Private health insurance has made no- 
table advances in recent years. But older 
people, who need it most but can afford it 
least, are still unable to pay the high pre- 
miums made necessary by their dispropor- 



tionately heavy use of health care services 
and facilities, if eligibility requirements are 
to be low and the scope of benefits broad. 
Today, only about half of our aged popula- 
tion has any health insurance of any kind — 
and most of these have insufficient coverage. 

To be sure, welfare assistance, and Fed- 
eral legislation to help the needy or "med- 
ically indigent," will provide health services 
in some instances. But this kind of help is 
not only less appealing, coupled as it is with 
a means test, it reaches very few of those 
who are not eligible for public assistance 
but are still not able to afford the care 
they need. 

I therefore recommend again the enact- 
ment of a health insurance program for the 
elderly under the Social Security system. 
By this means the cost of health services in 
later years can be spread over the working 
years — and every worker can face the future 
with pride and confidence. This program, 
of course, would not interfere in any way 
with the freedom of choice of doctor, hos- 
pital or nurse. It would not specify in any 
way the kind of medical or health care or 
treatment to be provided. But it would 
establish a means to pay for the following 
minimum levels of protection: 

First — Inpatient hospital expenses for up 
to 90 days, in excess of $10 per day for the 
first 9 days (with a minimum payment by 
each person of $20), and full costs for the 
remaining 81 days. 

Second — the cost of nursing home services 
up to 180 days immediately after discharge 
from a hospital. By providing nursing 
home care for twice as long as that in the 
hospital, the patient is encouraged to use 
the less expensive facilities when these will 
satisfy his requirements. 

Third — the cost of hospital outpatient 
clinic diagnostic services in excess of $20. 
These benefits will reduce the need for 
hospital admissions and encourage early 
diagnosis. 

Fourth — the cost of community visiting 
nurse services, and related home health serv- 
ices, for a limited number of visits. These 



166 



]ohn F. Kennedy, 7962 



Feb. 27 [65I 



will enable many older people to receive 
proper health care in their own homes. 

It should be emphasized that we are dis- 
cussing a gap in our self-financed, contribu- 
tory social insurance system. These are all 
insurance benefits which will be available 
to everyone over 65 who is eligible for Social 
Security or Railroad Retirement benefits. 
They would be entirely self -financed by an 
increase in Social Security contributions of 
one quarter of one percent each on employ- 
ers and employees, and by an increase in the 
maximum earnings base from $4800 a year 
to $5200 a year. No burden on the general 
revenues is involved. I am not unmindful of 
the fact, however, that none of our social 
insurance systems is universal in its cover- 
age — and that direct payments may be nec- 
essary to provide help to those not covered 
for health insurance by Social Security. But 
the two problems should not be confused — 
and those who have made no contribution 
toward such a fund should not be regarded 
as in the same category as those who have — 
and because a minority lacks the protection 
of social security is no reason to deny addi- 
tional self-financed benefits to the great 
majority which it covers. 

II. HEALTH PROFESSIONS PERSONNEL 

The nation's health depends on the avail- 
ability and efficient use of highly trained and 
skilled professional people. These people 
are in very short supply. Unless we take 
steps to train more physicians and more 
dentists, the promise of modern medicine 
can not be fully realized. 

In an earlier message this year, I repeated 
my recommendation for Federal aid for the 
construction and expansion of schools of 
medicine, osteopathy, dentistry and public 
health, and for helping talented but needy 
students pursue their professional education. 
I recommended: (i) A lo-year program of 
grants to plan and construct such profes- 
sional schools in order to increase the na- 
tion's training capacity; and (2) a program 
of Federal scholarship aid for talented stu- 



dents in need of financial assistance, plus 
cost-of-education payments to the schools. 

The urgency of this proposal cannot be 
repeated too often. It takes time to con- 
struct new facilities and many years for 
doctors to be trained. A young man enter- 
ing college this fall will not be ready to 
start his practice until 1972 — and even later 
if he plans to enter a specialty. The costs 
of construction and operation are mounting. 
Only six schools of medicine have been 
opened in the last decade; and the number 
of (graduates has risen only 15 percent. 
Over the same period, student applications to 
medical schools have declined sharply. Our 
ratio of active physicians to population is 
less today than it was 10 years ago, and 
growing worse, and in the next 10 years we 
shall need to expand existing medical and 
dental school facilities, and to construct 20 
new medical and 20 new dental schools. 

We must also provide financial help to 
talented but needy students. I have previ- 
ously expressed concern over the fact that 
medicine is increasingly attracting only the 
sons and daughters of high income fam- 
ilies — ^43 percent of the students in our 
nation's medical schools in 1959 came from 
the 12 percent of the United States families 
with an annual income of $10,000 or more. 

A survey has shown that four years in 
medical school cost each student of the 1959 
graduating class an average of $11,600. 
More than half of them had to borrow sub- 
stantial sums to complete their education, 
and one-third of the group had an average 
debt of $5,000. Many of these students still 
have from one to seven years of additional 
professional training, at low stipends, still 
facing them. Obviously further loans and 
further debts are not the answer. 

Also: modern health care is extremely 
complex. It demands the services of a 
skilled and diversified team of specialists and 
technical personnel. 

But there are shortages in almost every 
category — and the shortages are particularly 
severe in nursing. Last year I authorized 
the Surgeon , General of the Public Health 



167 



[65] Feb, 27 



Public Papers of the Presidents 



Service to set up a consultant group on nurs- 
ing, and a comprehensive study of this field 
is well underv^ay. I expect to receive their 
report in the near future. 

III. IMMUNIZATION 

There is no longer any reason why Ameri- 
can children should suffer from polio, diph- 
theria, whooping cough, or tetanus — diseases 
which can cause death or serious conse- 
quences throughout a lifetime, which can be 
prevented, but which still prevail in too 
many cases. 

I am asking the American people to join 
in a nationwide vaccination program to 
stamp out these four diseases, encouraging 
all communities to immunize both children 
and adults, keep them immunized, and plan 
for the routine immunization of children yet 
to be born. To assist the States and local 
communities in this effort over the next 3 
years, I am proposing legislation authoriz- 
ing a program of Federal assistance. This 
program would cover the full cost of vac- 
cines for all children under five years of age. 
It would also assist in meeting the cost of 
organizing the vaccination drives begun 
during this period, and the cost of extra 
personnel needed for certain special tasks. 

In addition, the legislation provides con- 
tinuing authority to permit a similar attack 
on other infectious diseases which may be- 
come susceptible of practical eradication as 
a result of new vaccines or other preventive 
agents. Success in this effort will require 
the whole-hearted assistance of the medical 
and public health professions, and a sus- 
tained nationwide health education effort. 

IV. HEALTH RESEARCH 

The development of these immunization 
techniques was made possible by medical re- 
search, just as it has made possible the new 
drugs, surgical techniques and other treat- 
ments which have virtually conquered many 
of the leading killers of a generation ago — 



tuberculosis, pneumonia, rheumatic fever 
and many others. 

But conquest of the infectious diseases, by 
increasing our life span has made us more 
vulnerable to cancer, heart disease and other 
long-term illnesses. Today, two persons die 
from heart disease and cancer in the United 
States every minute. Last year, more than 
one million Americans fell victim to these 
merciless diseases. 

They are not merely diseases of old age. 
Cancer leads all other diseases as the cause of 
death in children under age 15. Of the ten 
million Americans who suffer from heart 
disease, more than half of them are in 
their most productive years, between 25 
and 64. 

Fortunately, medical research, supported 
to an increasing degree over the past 15 years 
by the Federal Government, is achieving 
exciting breakthroughs against both cancer 
and heart disease as well as on many other 
fronts. We can now save one out of every 
three victims of cancer, compared to only 
one out of four saved less than a decade ago. 
Our nationwide cancer chemotherapy pro- 
gram is saving many children and adults 
who would have been considered hopeless 
cases only a few years ago. And advances in 
heart surgery have restored to productive 
lives many thousands, while full prevention 
of many forms of heart disease seems increas- 
ingly within our reach. 

We must, therefore, continue to stimulate 
this flow of inventive ideas by supporting 
medical research along a very broad front. 
I have proposed substantially increased funds 
for the National Institutes of Health for 
1963, particularly for research project grants, 
and the training of specialists in mental 
health. Expenditures by the Institutes in 
1963 are estimated to exceed $740 million, 
an increase of more than $100 million from 
the current year and a four-fold increase in 
the last 5 years. I am also renewing my rec- 
ommendation that the current limitation on 
payment of indirect costs by the National 
Institutes of Health in connection with 



168 



John F. Kennedy, 1962 



Feb. 27 [65] 



research grants to universities and other 
institutions be removed. 

In keeping with the broadening horizons 
of medical research, I again recommend the 
establishment of a new Institute for Child 
Health and Human Development within 
the National Institutes of Health. Legisla- 
tion to create this new Institute was intro- 
duced in the last session of Congress. 

We look to such an Institute for a full- 
scale attack on the unsolved afflictions of 
childhood. It would explore prenatal influ- 
ences, mental retardation, the effect of nutri- 
tion on growth, and other basic facts needed 
to equip a child for a healthy, happy life. 
It would, in addition, stimulate imaginative 
research into the health problems of the 
whole person throughout his entire life 
span — from infancy to the health problems 
of aging. 

As a parallel action I am requesting au- 
thorization for contracts and cooperative 
arrangements for research related to mater- 
nal and child health and crippled children's 
services. This legislation, introduced in the 
last session of Congress, would strengthen 
the programs of the Children's Bureau in 
these areas, and foster effective coordination 
between the research activities of this Bureau 
and those of the proposed new Institute. 

I also recommend that the present Divi- 
sion of General Medical Sciences at the 
National Institutes of Health be given the 
status and tide of an Institute. This pro- 
gram supports fundamental research in 
biology and other sciences, and strengthens 
the research capabilities of universities and 
other institutions. 

Last year. Congress enacted legislation 
temporarily extending and expanding the 
program of Federal matching grants for the 
construction of health research facilities. 
This program has been very successful, and 
it should be further extended. 

In these and other endeavors, including 
our new National Library of Medicine, we 
must take steps to accelerate the flow of 
scientific communication. The accumula- 



tion of knowledge is of little avail if it is not 
brought within reach of those who can use 
it. Faster and more complete communica- 
tion from scientist to scientist is needed, so 
that their research efforts reinforce and com- 
plement each other; from researcher to prac- 
ticing physician, so that new knowledge can 
save lives as swifdy as possible; and from the 
health professions to the public, so that 
people may act to protect their own health. 

v. MENTAL HEALTH 

While we have treated the physically ill 
with sympathy, our society has all too often 
rejected the mentally ill, consigning them to 
huge custodial institutions away from the 
heart of the medical community. But more 
recendy, the signs of progress toward en- 
lightened treatment have been increasing. 
The discovery and widespread use of tran- 
quilizing drugs over the past six years has 
resulted in an unprecedented reduction of 
32,000 patients in the census of our State 
mental hospitals. But one-half of our hospi- 
tal beds are still occupied by the mentally ill; 
and hundreds of thousands of sufferers and 
their families are still virtually without hope 
for progress. 

I want to take this opportunity to express 
my approval, and offer Federal cooperation, 
for the action of the Governors of the 50 
States at a special National Governors Con- 
ference called last November. In accepting 
the challenge of the report of the Joint Com- 
mission on Mental Illness and Health, they 
pledged a greater State effort — both to trans- 
fer treatment of the majority of mental pa- 
tients from isolated institutions to modern 
psychiatric facilities in the heart of the com- 
munity, and to provide more intensive treat- 
ment for hospitalized patients in State 
institutions. 

But this problem cuts across state lines. 
Since the enactment in 1946 of the National 
Mental Health Act, the Federal Government 
has provided substantial assistance for the 
support of psychiatric research, training of 
personnel and community mental health 



715-405 O — 64- 



-15 



169 



[65] Feb. 27 



Public Papers of the Presidents 



programs. The Government is currently 
spending over $1 billion annually for mental 
health activities and benefits. The National 
Institute of Mental Health alone will use 
approximately $100 million this year. Ap- 
proximately $350 million is budgeted by 
Federal agencies for the care of the mentally 
ill; over $500 million is spent annually in 
the form of pensions and compensation for 
veterans v^^ith neuro-psychiatric disorders; 
and additional sums for similar benefits are 
paid by the social security and other Fed- 
eral disability programs. 

But far more needs to be done. Adequate 
care requires a supply of v^ell trained person- 
nel, working both in and out of mental hos- 
pitals. In 1946, there were only 500 
psychiatric outpatient clinics in the nation. 
Today, there. are more than 1500. More 
than 500,000 people received treatment in 
these clinics last year. We are making 
progress — but the total effort is still far short 
of the need. It will require still further 
Federal, State and local cooperation and 
assistance. 

I have directed the Secretary of Health, 
Education, and Welfare, the Secretary of 
Labor and the Administrator of Veterans 
Affairs, with the assistance of the Council of 
Economic Advisers and the Bureau of the 
Budget, to review the recommendations of 
the Joint Commission on Mental Illness and 
Health and to develop appropriate courses 
of action for the Federal Government. 
They have been instructed to consider such 
questions as the desirable alignment of re- 
sponsibility among Federal, State and local 
agencies and private groups; the channels 
through which Federal activities should be 
directed; the rate of expansion possible in 
the light of trained manpower availabilities; 
and the balance which should be maintained 
between institutional and non-institutional 
programs. 

Meanwhile, we must continue our vigor- 
ous support of research to learn more about 
the causes and treatment of mental illness. 
We must train many more mental health 



personnel. We must continue to strengthen 
treatment programs for Federal beneficiaries 
through our many existing Federal institu- 
tions, including St. Elizabeth's Hospital. 
And I have recommended added funds for 
the National Institute of Mental Health to 
increase its program for the training ot 
professional mental health workers and 
physicians. 

VI. MENTAL RETARDATION 

The nature and extent of mental retarda- 
tion is often misunderstood. It is frequently 
confused with mental illness. While mental 
illness disables after a period of normal de- 
velopment, mental retardation is usually 
either present at birth or underway during 
childhood. It is not a disease but a symp- 
tom of a disease, an injury, or some obscure 
failure of development. It refers to a Jack 
of intellectual ability, resulting from arrested 
rnental development, and manifesting itself 
in poor learning, inadequate social adjust- 
ment, and delayed achievement. Its causes 
are many and obscure. We are encouraged 
with each new discovery — ^but present knowl- 
edge of this condition is still so fragmentary 
that its prevention and cure will require 
continued and persistent research over an 
extended period of time. The present 
limitations of knowledge make diagnosis ex- 
tremely difficult, particularly since it involves 
the very young. And a major obstacle to 
progress is the lack of personnel trained in 
the special skills required to work effectively 
with the mentally retarded. 

Thus, in spite of the progress made in 
recent years, mental retardation remains one 
of our most serious health and education 
problems. Approximately 5 million peo- 
ple in the United States are mentally re- 
tarded; and each year more than 126,000 
more babies are born who will suffer from 
this tragic affliction. 

I have asked the Panel on Mental Retarda- 
tion which I appointed last year to appraise 
the adequacies of existing programs and the 



170 



]ohn F. Kennedy, 7962 



Feb. 27 [65] 



possibilities for greater utilization of current 
knowledge. It will review and make rec- 
ommendations with regard to: (i) the per- 
sonnel necessary to develop and apply new 
knowledge; (2) promising avenues of in- 
vestigation, and the means to support and 
encourage research along these lines; and 
(3) improvement and extension of present 
programs of treatment, education and 
rehabilitation. 

I expect the Panel's report before the end 
of this year; and we should then be ready for 
the next phase of the attack upon this prob- 
lem. I am confident that the work of this 
Panel will help us chart the path toward our 
ultimate goal of preventing this tragic con- 
dition. 



VII. TOWARD A MORE HEALTHY ENVIRONMENT 

There is an increasing gap in our knowl- 
edge of the impact upon our health of the 
many new chemical compounds and physi- 
cal and biological factors introduced daily 
into our environment. Every year 400 to 
500 new chemicals come into use. Many of 
them will improve the public health. 
Others, regardless of every safeguard, pre- 
sent potential hazards. Each year there are 
2 million new cases of intestinal disease. 
Hepatitis is at an all-time high. We need to 
apply additional protection against every 
new hazard resulting from contamination of 
the air we breathe or the water we drink. 

As I already mentioned, the water pollu- 
tion control legislation passed by the Con- 
gress last year has permitted us to step up 
our efforts to purify our water. We should 
make a similarly accelerated effort in par- 
allel fields. I am therefore recommending: 

I. Legislation to strengthen the Federal 
effort to prevent air pollution, a growing and 
serious problem in many areas. Fresh air 
cannot be piped into the cities, nor can it be 
stored for future use. Our only protection 
is to prevent pollution. 

Under the existing Air Pollution Act, the 



Federal Government is conducting badly 
needed research on the biological effects of 
air pollution; developing improved methods 
for identifying, measuring, analyzing, and 
controlling pollution; and working with 
State and local officials to accelerate neces- 
sary control programs. 

I recommend that the Congress enact leg- 
islation to provide: 

(a) authority for an adequate research 
program on the causes, effects, and control 
of air pollution, 

(b) project grants and technical assistance 
to State and local air pollution control agen- 
cies to assist in the development and initia- 
tion or improvement of programs to safe- 
guard the quality of air, and 

(c) authority to conduct studies and hold 
public conferences concerning any air pollu- 
tion problem of interstate nature or of sig- 
nificance to communities in different parts 
of the Nation. 

Legislation along these lines has already 
passed the Senate, and I urge final favorable 
action in this Congress. 

2. In order to provide a central focal point 
for nationwide activities in the control of 
air pollution, water pollution, radiation 
hazards, and occupational hazards, I rec- 
ommend the establishment of a National 
Environmental Health Center. This center 
will serve as the base laboratory for research 
and training activities, and as headquarters 
for Public Health Service personnel con- 
cerned with health hazards in the environ- 
ment. It will facilitate regular and frequent 
collaboration between Public Health Service 
scientists and those with whom they should 
consult in other Federal agencies. The 
center will serve also to encourage closer 
cooperation with industrial research and 
control groups, with universities and private 
foundations, and with State and local 
agencies. 

3. Finally, I have recommended an in- 
crease in the appropriations for the study 
and control of water and air pollution and 



171 



[65] Feb. 27 



Public Papers of the Presidents 



for research into protection against radiation 
peril. 

VIII. ENCOURAGEMENT OF GROUP PRACTICE 

Akin to the problem of increasing our 
overall supply of professional and technical 
health personnel is the problem of making 
more effective use of the personnel wt al- 
ready have. Experience in many communi- 
ties has proven the value of group medical 
and dental practice, v^^here general practi- 
tioners and medical specialists voluntarily 
join to pool their professional skills, to use 
common facilities and personnel, and to offer 
comprehensive health services to their 
patients. Group practice offers great prom- 
ise of improving the quality of medical care, 
of achieving significant economies and con- 
veniences to physician and patient alike, and 
of facilitating a voider and better distribution 
of the available supply of scarce personnel. 

A major obstacle to the development of 
group practice, how^ever, particularly in our 
smaller communities, is a lack of the spe- 
cialized facilities needed. I therefore 
recommend legislation v^hich will authorize 
a 5-year program of Federal loans for con- 
struction and equipment of group practice 
medical and dental facilities, w^ith priority 
being given to facilities in smaller communi- 
ties and to those sponsored by non-profit or 
cooperative organizations. 

IX. HEALTH OF DOMESTIC AGRICULTURAL 
MIGRANT WORKERS 

Domestic agricultural migrants and their 
families — numbering almost one million per- 
sons — have unmet health needs far greater 
than those of the general population. Their 
poor health not only affects their own lives 
and opportunities, but it is a threat to the 
members of the permanent communities 
through which they migrate. The poverty 
of these migrants, their lack of health 
knowledge, and their physical isolation and 
mobility, all tend to limit their access to 
community health services. To help im- 



prove their health conditions, I recom- 
mend — in addition to expanding the special 
Public Health Service activities directed to 
them — the enactment of legislation to en- 
courage the states to provide facilities and 
services for migrant workers. 

X. PUBLIC HEALTH SERVICE REORGANIZATION 

Changes in recent years have greatly in- 
creased the responsibilities of the Public 
Health Service. Some major organizational 
changes are necessary in order to help this 
agency carry out its vital tasks more effec- 
tively. I will shortly forward to the Con- 
gress a proposal which will make these 
reorganizational changes possible. It will 
permit more effective administration of com- 
munity health programs and those dealing 
with the health hazards of the environment. 

OTHER HEALTH GOALS 

The struggle for improved health is never- 
ending. While we are pressing new attacks 
in sectors of past neglect and present urgency, 
we must continue to advance along the 
entire front. 

Health Facilities Construction. I have 
asked the Secretary of Health, Education, 
and Welfare to review the program of fed- 
erally aided medical facility construction, 
to evaluate its accomplishments and future 
course. Through the Federal support pro- 
vided by this very successful program, 
general medical care facilities have been 
constructed in most of the areas of greatest 
need. There are, however, large and urgent 
unmet requirements for facilities to provide 
long-term care, especially for the elderly, 
and short-term mental care at the commu- 
nity level. In addition, a growing number 
of existing urban hospitals require modern- 
ization so that they may continue to serve 
the needs of the people dependent upon 
them. 

Health of Merchant Seamen. Over the 
past several years funds for the operation of 
the Public Health Service hospitals have 



172 



John F. Kennedy, 7962 



Feb. 28 [66] 



been substantially increased to improve the 
quality of medical care for merchant seamen 
and other beneficiaries. A start has also 
been made on enabling these hospitals to 
conduct medical research. I have directed 
the Secretary of Health, Education, and 
Welfare to develop a plan for providing 
more readily accessible hospital care for 
seamen and for improving the physical 
facilities of those Public Health Service 
hospitals w^hich are needed to provide such 
care. 

Physical Fitness. The foundation of good 
health is laid in early life. Yet large num- 
bers do not receive necessary health care as 
infants and school children. The alarming 
rate of correctible health defects among selec- 
tive service registrants highlights the prob- 
lem. In all 50 States there has been a 
gratifying response to my call of last year 
for vigorous programs for the physical de- 
velopment of our youth. Pilot projects 
stimulated by the President's Council on 
Youth Fitness proved that basic programs, 
w^ithin the reach of every school, can pro- 
duce dramatic results. Our children must 
have an opportunity for physical develop- 
ment as V7t\\ as for intellectual growth. 
Our increased national emphasis on physical 
fitness, based on daily vigorous activity and 
sound nutritional and health practices, 
should and will be continued. 



International Health, Finally, it is im- 
perative that we help fulfill the health needs 
and expectations of less developed nations, 
who look to us as a source of hope and 
strength in fighting their staggering prob- 
lems of disease and hunger. Mutual efforts 
toward attaining better health will help 
create mutual understanding. Our foreign 
assistance program must make maximum 
use of the medical and other health re- 
sources, skills and experience of our nation 
in helping these nations advance their own 
knowledge and skill. We should, in addi- 
tion, explore every possibility for scientific 
exchange and collaboration between our 
medical scientists and those of other na- 
tions — programs which are of benefit to all 
who participate and to all mankind. 

CONCLUSION 

Good health is a prerequisite to the enjoy- 
ment of "pursuit of happiness." Whenever 
the miracles of modern medicine are beyond 
the reach of any group of Americans, for 
whatever reason — economic, geographic, oc- 
cupational or other — we must find a way to 
meet their needs and fulfill their hopes. For 
one true measure of a nation is its success in 
fulfilling the promise of a better life for each 
of its members. Let this be the measure of 

our nation. 

John F. Kennedy 



66 Statement by the President Upon Receiving Report of the 
Presidential Railroad Commission. February 28, 1962 



IN DECEMBER i960. President Eisen- 
hower established, at the joint request of the 
nation's railways and the five unions repre- 
senting the some 250,000 workers who 
operate the trains, a Presidential Railroad 
Commission. This Commission was com- 
posed of representatives of the railway 
unions and carriers, designated by them, and 
public members appointed by the President. 
On March 5, 1961, 1 appointed Judge Simon 
H. Rifkind to be chairman of the Commis- 



sion. By the mutual and voluntary agree- 
ment of the parties, the Commission was 
charged with the duty to study the dispute 
in the railroad industry over work rules and 
practices and to submit to the President and 
to the parties a report of its findings and 
recommendations for the amicable settle- 
ment of the dispute. 

Today, I have received the report of the 
Commission. It represents more than a 
year's work, during which, I am informed. 



173 



[66] Feb. 28 



Public Papers of the Presidents 



over 15,500 pages of oral testimony was 
given before the Commission, and more than 
300 exhibits filed with it. In addition, spe- 
cial studies were made for the Commission 
by its stafiE and by outside experts. The 
work of the Commission represents an ex- 
haustive study of the relations between the 
railroads and their operating employees. 

As provided for in the memorandum of 
agreement entered into between the parties 
in October i960, the report is remanded to 
them for their appropriate consideration. 
Under the terms of their agreement, this re- 
port is not an arbitration award. Rather 
it is a study by men who have conscien- 
tiously tried to ascertain the facts as they 
exist and to make recommendations based 
on these facts. It is now up to the parties 
themselves to consider these recommenda- 
tions and, as they have agreed, to enter into 
immediate and expeditious collective bar- 
gaining over the issues which remain in 
dispute. I believe the report will be useful 
in this task. 

The good offices of the National Media- 
tion Board and the Secretary of Labor are 
available to help the parties reach agreement. 

I cannot point out too strongly that while 
the carriers and the unions have great re- 
sponsibilities to their respective interests they 
have an overriding responsibility to the 
national interest to provide the most efficient 
and safe rail transportation possible. I know 
that both sides agree with me that in serving 
the national interest first they serve their 
own interest best. 

The railroads and their employees are im- 
portant national assets which we must con- 
serve. Their survival as a healthy industry 
and an outstanding work force vital to our 
economy depends to a large extent upon 
their cooperative ability to modernize and 
improve their services and practices in the 
face of increasing competition from other 



means of transportation. In doing this, the 
human aspect of the equation must not be 
overlooked. 

The railroad industry is a conspicuous il- 
lustration of the problem of changing tech- 
nology. While seeking ways in which to 
reap the benefits of advancing technology, 
it is necessary at the same time to preserve 
basic human interests. 

These demands — service to the public, 
modernization of the industry, protection of 
the legitimate rights of the workers — are the 
basic issues that lie on the bargaining table. 
I am sure that the mature wisdom of 
both parties, experienced as they are 
through many years of labor-management 
relations, can resolve these issues sensibly 
and amicably. 

I commend the members of the Commis- 
sion for their diligent efforts on the report 
they have submitted. The report contains 
the unanimous views of the public members, 
the dissenting views of the labor members 
and the supplemental views of the carriers. 
I am sure that it represents the sincere views 
of the various parties. I especially wish to 
extend my personal thanks and appreciation 
to Judge Simon H. Rifkind, the Commission 
chairman, for devoting his time and energies 
to the work of the Commission and for 
bringing his great competence and integrity 
to bear on its operation. Judge Rifkind has 
rendered another fine contribution to his 
already outstanding record of public service. 

note: The Presidential Railroad Commission was 
established by Executive Order 10 891 of November 
I, i960 (25 F.R. 10525). Appointment of the 15 
members of the Commission was announced by 
President Eisenhower on December 22, i960 (see 
1960-61 vol., this series, p. 880). 

The Commission's report, dated February 1962 
(Government Printing Office, 1962, 576 pp.) and a 
summary fact sheet (18 pp.) were released with 
President Kennedy's statement. 



174 



John F. Kennedy, 7962 



Mar. I [68] 



6j Statement by the President Recorded for the Opening of the 
Red Cross Campaign. February 28, 1962 



AS PRESIDENT of the United States and 
in accordance with custom, I am proclaim- 
ing the month of March as Red Cross Month. 
And, as Honorary Chairman of the Red 
Cross, I earnestly ask your help for this 
great cause. All of us are familiar with the 
work of the Red Cross, what it does for our 
servicemen, their families here and overseas, 
what it does for those who have been struck 
by disaster, whether by hurricanes, torna- 
does, floods, what it does in collecting blood 
for the thousands of people in our hospitals, 



whose lives might be lost without this assist- 
ance. Voluntary giving has been part of 
our American tradition since our earliest 
days and I hope, this year, in these diflEcult 
times that the American people will once 
again respond as they have so often in the 
past, generously and with a full heart. We 
have much to be thankful for and one of the 
ways we can indicate our support for this 
country, our support for this work, is to 
respond generously. 
Thank you very much. 



68 Remarks at the loth Annual Presidential Prayer Breakfast. 
March i, 1962 



Senator, Judge, Mr, Speaker, Mr, Justice, 
Governor, gentlemen: 

I want to, as President, express my appre- 
ciation to all those whose efforts make this 
breakfast possible. This is only one of a 
worldwide effort, I believe, to build a closer 
and more intimate association among those 
of different faiths in different countries and 
in different continents, who are united by a 
common belief in God, and therefore united 
in a common commitment to the moral 
order — and as Governor Daniels said, the 
relationship of the individual to the state. 

The effort made in New Delhi among the 
World Council of Churches, the efforts that 
have been made in Europe to build better 
understanding among men and women of 
different faiths, the effort made in this coun- 
try, I believe are most important and most 
essential. 

I do not suggest that religion is an instru- 
ment of the cold war. Rather it is the basis 
of the issue which separates us from those 
who make themselves our adversary. And 
at the heart of the matter, of course, is the 
position of the individual — his importance, 



his sanctity, his relationship to his fellow 
men, his relationship to his country and his 
state. This is in essence the struggle, and 
it is necessary, therefore, that in these diffi- 
cult days, when men and women who have 
strong religious convictions are beleaguered 
by those who are neither hot nor cold, or by 
those who are icy cold, it is most important 
that we make these common efforts — as we 
do this morning. So I congratulate you all, 
and express appreciation to you and hope 
that it will serve as an inspiration to others 
in other parts of our country. 

I believe yesterday we saw an interesting 
contrast in the response which Colonel 
Glenn made as to whether he had prayed, 
and he said that he had not, that he had 
made his peace with his Maker many years 
before, and the statement made by Titov in 
which during his flight, as he flew over the 
Soviet Union he realized, he said, the won- 
ders of the Communist system. 

I preferred Colonel Glenn's answer be- 
cause I thought it was so solidly based, in his 
own life, in his activities in his church, and 
I think reflects a quality which we like to 



175 



[68] Mar. 



Public Papers of the Presidents 



believe and I think we can believe is much a 
part of our American heritage. So I con- 
gratulate you. 

In our program this morning there is a 
quotation from Lincoln which I think is 
particularly applicable today. He said, "I 
believe there is a God. I see the storm com- 
ing and I believe He has a hand in it. If He 
has a part and place for me, I believe that I 
am ready." 

We see the storm coming, and we believe 
He has a hand in it, and if He has a place 
and a part for us, I believe that we are ready. 

[The President spo\e first to the gentlemen 
in the hotel's main ball room and then to the 
ladies in the state and east rooms, ^ 

Ladies: 

Last year I expressed some concern that 
instead of having been separated at these 
breakfasts — the pharisees and the publicans 
and the sinners and the saints — that the sepa- 
ration occurred on the basis of sex and not 
on those who should have been in the front 
room and those who were in the back room. 

I do want to say, however — express my 
appreciation to you for the effort that you 
are making, to tell you how valuable I think 
it is that in this Capital of this most impor- 
tant country, upon which so much depends, 
that these breakfasts should be held, and 
that this demonstration of our commitment 
should be made. 

We bear great responsibilities and great 
burdens not only to ourselves in this country 
but to so many around the world whose 
future hangs in the balance and depends so 
much on us. 

We may not feel that our efforts are always 
appreciated, and I am not sure that that is so 



important, but we want to make sure that 
our efforts are effective, and that this genera- 
tion — which faces the greatest challenges that 
any country, any free people, have ever 
faced, and moves in the midst of the greatest 
of opportunities and the greatest of dan- 
gers — that we shall meet our responsibility, 
which carries with it an obligation to our 
country, but I think in a larger sense carries 
with it an obligation to all those who desire 
to live a life of freedom and a life which 
permits them to participate with their neigh- 
bors and with God in the way they choose. 

So I commend you for the example you 
set to us all. Upon your conviction and your 
effort so much depends, and it is a source of 
satisfaction to be here with Mrs. Johnson, 
the Vice President's wife, and with the 
Governor of Texas — and Senator Carlson — 
Senator Stennis — most importantly, I think, 
of Reverend Billy Graham, who has served 
this cause about which I speak so well here 
and around the world. He has, I think, 
transmitted this most important quality of 
our common commitments to faith in a way 
which makes us all particularly proud. 

So we are glad to see you this morning, 
and we appreciate what you are doing. 

note: The prayer breakfast of International Chris- 
tian Leadership, Inc., a nondenominational group 
of laymen, was held at the Mayflower Hotel in 
Washington. In his opening words the President 
referred to Frank Carlson, U.S. Senator from 
Kansas, who served as chairman of the breakfast; 
Boyd Leedom, a member of the National Labor 
Relations Board and a former justice of the South 
Dakota Supreme Court; John W. McCormack, 
U.S. Representative from Massachusetts and Speaker 
of the House of Representatives; Earl Warren, Chief 
Justice of the United States; and Price Daniel, 
Governor of Texas. 



69 Special Message to the Congress on Conservation. 
March i, 1962 



To the Congress of the United States: 

As our population expands, as our indus- 
trial output increases, and as rising produc- 
tivity makes possible increased enjoyment of 



leisure time, the obligation to make the most 
efficient and beneficial use of our natural 
resources becomes correspondingly greater. 
The standard of living w^e enjoy — ^greater 



176 



John F. Kennedy, 7962 



Mar. I [69] 



than any other nation in history — is attrib- 
utable in large measure to the wide variety 
and rich abundance of this country's physical 
resources. But these resources are not inex- 
haustible — nor do they automatically replen- 
ish themselves. 

We depend on our natural resources to 
sustain us — but in turn their continued avail- 
ability must depend on our using them 
prudently, improving them wisely, and, 
where possible, restoring them promptly. 
We must reaffirm our dedication to the 
sound practices of conservation which can 
be defined as the wise use of our natural 
environment; it is, in the final analysis, the 
highest form of national thrift — the preven- 
tion of waste and despoilment while pre- 
serving, improving and renewing the quality 
and usefulness of all our resources. Our 
deep spiritual confidence that this nation will 
survive the perils of today — which may well 
be with us for decades to come — compels us 
to invest in our nation's future, to consider 
and meet our obilgations to our children and 
the numberless generations that will follow- 

Our national conservation effort must in- 
clude the complete spectrum of resources: 
air, water, and land; fuels, energy, and 
minerals; soils, forests, and forage; fish and 
wildlife. Together they make up the world 
of nature which surrounds us — a vital part 
of the American heritage. And we must not 
neglect our human resources — the Youth 
Conservation Corps, proposed as a part of 
the Administration's Youth Employment 
Opportunities Bill, should be established to 
achieve the dual objectives of conserving and 
developing the talents of our youth and of 
conserving and developing our outdoor 
resources. 

In the second month of this Administra- 
tion I sent to the Congress a message sum- 
marizing our plans for the development of 
our natural resources.^ In the year which 
followed, heartening progress was made, 
including the following: 



^ See 1 961 volume, this series, Item 49. 



— a full scale attack on one of the most 
destructive forms of waste — water pollu- 
tion — has been mounted under the 1961 
amendments to the Water Pollution Control 
Act. 

— the saline water program to find cheaper 
means of converting salt water to fresh water 
was given new impetus by legislation en- 
acted last year; three demonstration plants 
have begun operation and two more will 
shortly be under construction. 

— flood plain studies were initiated under 
a new nationwide program to provide the 
States and local governments with informa- 
tion needed to regulate the use of flood 
plains, thereby minimizing frightful flood 
losses. 

— work was started on 74 major water 
resources projects and 79 small watershed 
projects, and planning for water resources 
development has been intensified. 

— under recently issued regulations, suffi- 
cient land can now be acquired in the con- 
struction of Federally-financed reservoirs to 
preserve the recreational potential of those 
areas. 

— our urban areas can now guide their 
growth and development through the acqui- 
sition of open space for recreation and other 
purposes under the Housing Act of 1961 — 
a landmark in conservation effort. 

— the great outer beach of Cape Cod is 
now a National Seashore Area, protected for 
the present and future enjoyment of all 
Americans, the first major addition to the 
National Park System in 14 years. 

— a long-range duck stamp program has 
been launched to acquire additional lands 
for waterfowl so that they may grow and 
thrive. 

— a lo-year projection of needs and plans 
for the development of our national forests 
was sent to the Congress last September — a 
major step forward in the management of 
publicly-owned forests. 

— ^the Delaware River Basin Compact was 
approved, providing a new basis for coopera- 
tive and coordinate development. 



177 



[69] Mar. 



Public Papers of the Presidents 



— ^the Tennessee Valley Authority is giv- 
ing new emphasis to tributary watershed 
development. 

This progress is gratifying. But much 
remains to be done — our renewed interest 
and momentum must not wane. To provide 
an opportunity for the exchange of further 
ideas — and to permit those who have dedi- 
cated their efforts to the principles of conser- 
vation to participate in evaluating the prog- 
ress that has been made — and to seek the best 
possible advice in prescribing what must be 
done in the future — I propose to convene a 
White House Conference on Conservation 
this year. 

I. OUTDOOR RECREATION RESOURCES 

Adequate outdoor recreational facilities 
are among the basic requirements of a sound 
national conservation program. The in- 
creased leisure time enjoyed by our growing 
population and the greater mobility made 
possible by improved highway networks 
have dramatically increased the Nation's 
need for additional recreational areas. The 
341 million visits to Federal land and water 
areas recorded in i960 are expected to double 
by 1970 and to increase fivefold by the end 
of the century. The need for an aggressive 
program of recreational development is both 
real and immediate. 

The Outdoor Recreation Resources Re- 
view Commission, after a three-year study 
of our Nation's recreational demands and 
opportunities, has submitted a series of rec- 
ommendations deserving the attention of 
governments at all levels and of the citizenry 
at large. Many of the Commission's sugges- 
tions have already been explored and devel- 
oped to the point where we are prepared to 
recommend legislation implementing them. 
Others will be carefully considered and, 
where appropriate, put into effect by Execu- 
tive action; where additional legislation is 
required, recommendations will be made to 
the Congress. 

I. More than 20 different Federal Depart- 



ments and Agencies have responsibilities of 
one sort or another in the field of recreation. 
It is essential that there be close coordination 
among these different groups and that all 
plans be fitted into a basic national pol- 
icy. Accordingly, as recommended by the 
ORRRC Report, I shall appoint an Outdoor 
Recreation Advisory Council made up of the 
heads of Departments and Agencies prin- 
cipally concerned with recreation — ^to pro- 
vide a proper forum for considering national 
recreation policy and to facilitate coordinated 
efforts among the various agencies.^ 

2. Another organizational recommenda- 
tion of the ORRRC Report to be adopted 
is the creation within the Department of the 
Interior of a Bureau of Outdoor Recrea- 
tion.^ This Bureau will carry out planning 
functions already assigned to the Depart- 
ment of the Interior and will administer 
the program of Federal assistance for State 
agencies I am proposing below. This new 
Bureau will serve as a focal point within 
the Federal Government for the many ac- 
tivities related to outdoor recreation, and 
will work and consult with the Depart- 
ments of Agriculture, Army, and Health, 
Education, and Welfare, the Housing and 
Home Finance Agency and with other gov- 
ernmental agencies in implementing Federal 
outdoor recreation policies. 

3. The interest and investment in recre- 
ational development by the various States 
have been irregular and uneven. Some have 
demonstrated outstanding organizational 
skills with corresponding benefits. The 
ORRRC recommendation that the States 
should be encouraged and aided in their 
efforts to understand and realize the full 
potential that lies within their boundaries 
rests on sound ground. Accordingly, I 
urge the Congress to enact legislation which 



^ On April 27 the President issued Executive Order 
1 1 01 7 "Providing for Coordination With Respect 
to Outdoor Resources and EstabUshing the Recre- 
ation Advisory Council" (27 F.R. 4141). 

* Established by the Secretary of Interior on 
April 2. 



178 



]ohn F. Kennedy, 7962 



Mar. I [69] 



will shortly be transmitted to establish a 
program of matching grants for the devel- 
opment of State plans for outdoor recrea- 
tional programs. This program will supple- 
ment that enacted last year which authorized 
assistance to State and local governments in 
planning and acquiring open space lands in 
urban areas for recreation, conservation and 
other purposes. 

4. In most cases the magnificent national 
parks, monuments, forests and wildlife 
refuges presendy maintained and operated 
by the Federal Government have either been 
donated by States or private citizens or 
carved out of lands in the public domain. 
No longer can these sources be relied upon — 
we must move forward with an affirmative 
program of land acquisition for recreational 
purposes. For with each passing year, prime 
areas for outdoor recreation and fish and 
wildlife are pre-empted for suburban growth, 
industrial development or other uses. That 
expenditures for land resources is also a 
sound financial investment is clear from the 
multiplied value of those lands now devoted 
to parks, forests, and wildlife refuges which 
were acquired decades ago by the great con- 
servationists — ^moreover, steadily rising land 
prices can in some cases serve to foreclose 
public acquisition. Expansion of our per- 
manent recreational land base can best be 
achieved by investments in our future in the 
form of modest user payments from those 
who now enjoy our superb outdoor areas 
and from recreation and land related 
receipts. 

To meet our national needs for adequate 
outdoor recreational lands, I propose cre- 
ation of a "Land Conservation Fund" to be 
financed by (i) proceeds from entrance, 
admission, or user fees and charges at Fed- 
eral recreation areas; (2) annual user charges 
on recreation boats; (3) diversion from the 
Highway Trust Fund of refundable, but 
unclaimed, taxes paid on gasoline used in 
motor boats; and (4) receipts from the sale 
of surplus Federal nonmilitary lands. 

To prevent costly delay in beginning an 



acquisition program, I recommend author- 
ization be granted to include advances from 
the Treasury not to exceed $500 million over 
an eight-year period in the proposed "Land 
Conservation Fund" which will be repaid 
from the regular revenue sources of the 
Fund. Money would be made available 
from the Fund for land acquisition by 
annual appropriations by the Congress. 

5. Last year's Congressional approval of 
the Cape Cod National Seashore Area should 
be regarded as the path-breaker for many 
other worthy park land proposals pending 
before the Congress. I urge favorable action 
on legislation to create Point Reyes National 
Seashore in California; Great Basin National 
Park in Nevada; Ozark Rivers National 
Monument in Missouri; Sagamore Hill 
National Historic Site in New York; Can- 
yonlands National Park in Utah; Sleeping 
Bear Dunes National Lakeshore in Michi- 
gan; Prairie National Park in Kansas; Padre 
Island National Seashore in Texas; and a 
National Lakeshore Area in Northern 
Indiana. Acquisition of these park lands 
would be financed through the "Land 
Acquisition Fund." 

6. In some sections of the United States — ■ 
notably the East — available public lands do 
not meet the large recreational demands. 
These pent-up demands can be met in some 
instances through the disposal of lands sur- 
plus to Federal needs. I recommend that the 
Federal Surplus Property Disposal Act be 
amended to permit States and local govern- 
ments to acquire surplus Federal lands for 
park, recreation or wildlife uses on more 
liberal terms. Furthermore as the ORRRC 
report pointed out, fishing, hiking, picnick- 
ing, riding, and camping activities on private 
lands can — and should be intensified and 
encouraged. One important step in this 
direction is the recommendation made in my 
Message on Agriculture which would per- 
mit the orderly movement of millions of 
acres of land not needed to produce food and 
fibers to recreational and other uses. 

7. The special urgent recreation needs of 



179 



[69] Mar. I 



Public Papers of the Presidents 



our urban dwellers, first recognized by Con- 
gress in the Housing Act of 196 1, are evident 
from the dramatic response to this Adminis- 
tration's open-space land programs on the 
part of States and cities throughout the 
Nation. In view of the known backlog of 
need for recreational lands, and the remark- 
able rate at which urban and suburban lands 
are being put to other uses, I have recom- 
mended that the present open-space grant 
authorization be increased by $50 million. 

8. The fast- vanishing public shorelines of 
this country constitute a joint problem for 
the Federal Government and the States re- 
quiring a carefully conceived program of 
preservation. I recommend approval of 
legislation along the lines of S. 543, as ap- 
proved by the Senate, to authorize a study 
of the ocean, lake and river shorelines of the 
Nation to develop a Federal-State shoreline 
preservation program. 

9. Finally, we must protect and preserve 
our Nation's remaining wilderness areas. 
This key element of our Conservation pro- 
gram should have priority attention. 

I therefore again strongly urge the Con- 
gress to enact legislation establishing a 
National Wilderness preservation system 
along the lines of S. 174, introduced by 
Senator Anderson. 

II. WATER RESOURCES 

Our nation's progress is reflected in the 
history of our great river systems. The 
water that courses through our rivers and 
streams holds the key to full national devel- 
opment. Uncontrolled, it wipes out homes, 
lives and dreams, bringing disaster in the 
form of floods; controlled, it is an effective 
artery of transportation, a boon to industrial 
development, a source of beauty and recre- 
ation, and the means for turning arid areas 
into rich and versatile cropland. In no re- 
source field are conservation principles more 
applicable. By 1980, it is estimated, our 
national water needs will nearly double — 



by the end of the century they will triple. 
But the quantity of water which nature 
supplies will remain almost constant. 

Our goal, therefore, is to have sufficient 
water sufficiendy clean in the right place at 
the right time to serve the range of human 
and industrial needs. And we must har- 
monize conflicting objectives — for example, 
irrigation vs. navigation, multiple-purpose 
reservoirs vs. scenic park sites. Comprehen- 
sive and integrated planning is the only 
solution of this problem, requiring cooper- 
ative efforts at all levels of government. 

I, therefore, again urge the Congress to 
enact the Water Resources Planning Act 
which I transmitted to the Congress last 
July which would 

— authorize Federal grants-in-aid to assist 
the States in water resource planning; 

— authorize the establishment of river 
basin commissions representing State and 
national views to prepare and keep up to 
date coordinated and integrated basin plans; 
and 

— establish a Water Resources Council of 
key Cabinet officers to coordinate Federal 
river basin planning and development 
activities. 

This Administration adheres to the pol- 
icy enunciated in my Natural Resources 
message of last year that our available water 
supply will be used to provide maximum 
benefits for all purposes — hydroelectric 
power, irrigation and reclamation, naviga- 
tion, recreation and wildlife, and municipal 
and industrial water supply. These diverse 
uses and our future needs require thoughtful 
preservation and full development of our 
national water resources. 

The lead time is long in the development 
of water resources. Years are required to 
plan and build sound projects. Time should 
not be lost on those projects which have 
already been transmitted to the Congress for 
authorization: San Juan-Chama, Fryingpan- 
Arkansas, Burns Creek, Garrisoi; Diversion 
and Auburn-Folsom South. Federal plan- 



180 



John F. Kennedy, 7962 



Mar. I [69] 



ning efforts have been intensified and studies 
and recommendations for authorization of 
additional water developments accelerated. 
These plans and recommendations will be 
submitted to the Congress as they are 
completed. 

III. PUBLIC LANDS 

One hundred and fifty years ago the va- 
cant lands of the West were opened to 
private use. One hundred years ago the 
Congress passed the Homestead Act, prob- 
ably the single greatest stimulus to national 
development ever enacted. Under the im- 
petus of that Act and other laws, more than 
I.I billion acres of the original public do- 
main have been transferred to private and 
non-Federal public ownership. The 768 
million acres remaining in Federal owner- 
ship are a valuable national asset. 

Although the acres set aside for national 
parks, forests, and wildlife refuges are con- 
tributing increasingly to the national wel- 
fare, we must take action to assure that the 
full potential is realized from the vacant 
unused areas in the public domain (180 
million acres, exclusive of Alaska). More 
intensive management is now being applied 
to the public domain lands, but still more 
needs to be done. For example, we plan to 
establish a realistic schedule of fees and 
charges for use of Federal range lands, to 
replace the peculiar patchwork schedule now 
in effect. 

As a basis for making the public domain 
lands more productive, a comprehensive 
inventory has been initiated. Although 
most public domain lands must be retained 
in Federal ownership for defense and con- 
servation purposes, there are numerous tracts 
which can be utilized best through private 
ownership. We are currently updating pro- 
cedures for land exchanges to provide more 
orderly patterns of land tenure on both pub- 
lic and private lands. But unfortunately, the 
laws governing the transfer of public lands 



to other ownerships are antiquated and new 
procedures are sorely needed. I urge enact- 
ment of a new general land-sale law along 
the lines of H.R. 7788, as introduced by 
Congressman Aspinall. 

IV. SOIL, WATERSHED AND RANGE RESOURCES 

For a quarter of a century, we have recog- 
nized that a major responsibility for resources 
conservation rests with the farmers, ranchers, 
and others who own three-fourths of the 
Nation's land area. Today, 29,000 soil 
conservation districts provide leadership in 
the conservation effort with Federal tech- 
nical and financial assistance. 

Much progress has been made—by land 
terracing, strip cropping, and other erosion 
prevention and water conservation meas- 
ures — but nearly three-fourths of private 
crop and range lands still need improved 
conservation practices. Joint action to con- 
serve this basic resource — ^the land — must be 
continued and intensified for the benefit of 
future generations. 

During 1961 more watershed projects 
were approved for construction than in any 
previous year. This accelerated pace must 
be continued, on both public and private 
lands. These projects, while comparatively 
small, are of vital importance to rural areas 
and should be as broadly beneficial to the 
watershed area as possible. I urge, therefore, 
that the Congress enact legislation which 
will shortly be transmitted to clarify certain 
provisions of the Watershed Protection and 
Flood Prevention Act and to allow deferred 
repayment of municipal and industrial water 
supply costs. 

A special problem of land conservation 
calling for immediate attention is the serious 
erosion and river pollution created by sur- 
face mining practices. Techniques must 
promptly be devised to prevent or minimize 
this despoilment if we are not to abandon 
great areas of scenic beauty and create diffi- 
cult silting problems in many sections of the 



181 



[69] Mar. 



Public Papers of the Presidents 



country. I have directed the Secretary of the 
Interior, working with appropriate Federal 
agencies and with the States, to recommend 
a program of research and action. 



V. TIMBER RESOURCES 

Timber growth, particularly in softwoods, 
must be increased significandy if we are to 
meet the Nation's projected future require- 
ments for wood products. The growing of 
timber is a long-term project, requiring 
concerted public and private efforts, and 
considerable advance planning. 

A major advance in Federal forestry ef- 
forts was the lo-year development program 
established for the national forests and an- 
nounced last September. The Secretary of 
the Interior is currendy preparing a com- 
parable program for the forests under the 
jurisdiction of his Department. 

To implement these, I recommend ap- 
proval of legislation to be sent to the Con- 
gress shortly to accelerate the development 
of national multiple-purpose forest roads and 
trails. 

Although management of public forests 
and the large private forests rests on a sound 
basis, there is opportunity for further im- 
provement. For example, one step that can 
and will be taken is the establishment of a 
policy permitting the Federal Government 
to condition its granting of rights-of-way to 
private timber land owners within National 
Forests upon the receipt of corresponding 
rights to cross their private lands in order to 
harvest timber from National Forests. For 
an effective national timber resources con- 
servation effort, however, we must depend 
upon the quarter-billion acres of private 
timber lands, consisting primarily of small 
tracts in more than four million ownerships. 

Improved timber management practice on 
these small tracts is difficult because of such 
problems as nonresident ownership, short 
tenure, owner's lack of knowledge or inter- 
est in forestry, limited economic incentives, 
and the ineflScient size of forest units. 
Existing technical and financial assistance 



programs have proven inadequate, and I 
have therefore directed the Secretary of Agri- 
culture to intensify the efforts of his Depart- 
ment to develop a program for improving 
the management of those small forests. 



VI. MINERALS 

During the last 30 years, this nation has 
consumed more minerals than all the peoples 
of the world had previously used. Twice in 
those 30 years we have doubled the rate of 
mineral production. Current demands are 
being met without difficulty primarily be- 
cause of the immense technical and ex- 
ploratory efforts of the 1940's and early 
1950's. But present availability of raw 
materials must not blind us to tomorrow's 
requirements. 

Conservation of mineral resources benefits 
from the fact that, for practical purposes, 
they are not fixed in quantity — the useable 
volume and variety of minerals increase as 
technology advances. We have learned to 
use a host of materials which had no pre- 
vious value or had value only in limited uses. 

Technical research is obviously the crit- 
ical element in a program of conserving 
and strengthening both our mineral re- 
sources and our minerals industries. To 
assure us of adequate quantities of minerals 
in the future, and to enable our minerals 
industries to compete in world markets, we 
must find more effective means of discov- 
ering and extracting mineral deposits, learn 
to refine materials of lower quality, and 
find both new uses for minerals which are 
relatively abundant, and substitutes for 
those which are scarce or difficult to procure. 

A possible breakthrough for one of the 
hardest-hit minerals industries is the recent 
development of a coal slurry — a mixture of 
coal and water — which can be fed direcdy 
into great boilers for producing steam to 
generate electricity. This slurry, capable of 
being transported through pipelines similar 
to those used for oil, holds great promise 
and merits governmental and industrial con- 
sideration. I will shortly send to the Con- 



182 



John F. Kennedy, 7962 



Mar. I [69] 



gress proposals to facilitate the construction 
of pipelines to transport coal slurry in 
interstate commerce. 



VII. POWER 



One of the major challenges in resource 
conservation lies in the orderly development 
and efficient utilization of energy resources 
to meet the Nation's electric power needs — 
needs which double every decade. The goal 
of this Administration is to ensure an abun- 
dance of low cost power for all consumers — 
urban and. rural, industrial and domestic. 
To achieve this, we must use more effectively 
all sources of fuel, find cheaper ways to har- 
ness nuclear energy, develop our hydroelec- 
tric potential, utilize presently unused heat 
produced by nature or as a by-product of 
industrial processes, and even capture the 
energy of the tides where feasible. 

The ability to make long-range plans for 
the expansion of our Nation's electric power 
supply required by constantly growing 
power needs will be enhanced by a compre- 
hensive nationwide survey to be undertaken 
by the Federal Power Commission. Under 
existing authority contained in the Federal 
Power Act, the Commission will project our 
national power needs for the 1970's and 
1980's and suggest the broad outline of a 
fully interconnected system of power supply 
for the entire country. This information 
will encourage the electric power industry — 
both private and public — to develop indi- 
vidual expansion programs and intertie 
systems permitting all elements of the indus- 
try — and more importantly the consumers — 
to benefit from efficient, orderly planned 
growth. I urge favorable action on the 
request for adequate funds to initiate this 
study of the Nation's power needs for the 
next 20 years. 

Advantageous arrangements and techno- 
logical improvements for power generation 
and transmission are being developed by 
the Department of the Interior. Experi- 
mentation in extra high-voltage, direct- 
current transmission over long distances 



promises to enable us to send major blocks 
of low-cost off-peak electricity — that which 
is generated when the demand is low — as 
far as a thousand miles to areas where such 
energy can be put to higher and more val- 
uable use because of their different patterns 
of electricity demands. Similarly, investi- 
gation is continuing on possibilities for using 
cheap off-peak power to pump water to 
storage reservoirs permitting the water to 
be used to generate power when demands 
are great and power sells at a premium. 

VIII. RESEARCH AND TECHNOLOGY 

Implicit in the conservation thesis of wise 
use, improvement, preservation and restora- 
tion of our resources is the basic requirement 
of greater scientific knowledge and improved 
resources management. The catalog of re- 
source problems set forth in this message 
demonstrates the importance of intensive 
research in the resources field. In response 
to the demonstrated need for concentrated 
and coordinated research, this Administra- 
tion has 

— requested the National Academy of Sci- 
ences to undertake a thorough evaluation of 
the potentials and needs for research under- 
lying the development and use of natural 
resources. 

— directed the Federal Council for Science 
and Technology to coordinate the wide- 
ranging research programs of participating 
agencies to strengthen and unify our total 
governmental research effort in the natural 
resources field. 

— directed the Council of Economic Ad- 
visers to stimulate research in the economics 
of resource use. 

Coordinated research programs already 
underway and worthy of special note are 
the following: 

Oceanography — Our intensified effort to 
expand our knowledge and understanding 
of the vast resources held by the oceans 
through basic research and surveys of geo- 
logic and living resources will surely result 
in extending our known resource base, with 



183 



[69] Mar. I 



Public Papers of the Presidents 



encouraging prospects for improving our 
standard of living and adding protein-rich 
marine products to the diets of the hungry 
people of the world. 

Sports Fisheries and Wildlife — Studies of 
diseases and pesticides are continuing and 
efforts to solve the problems of passing mi- 
gratory fish over high dams are being accel- 
erated. A new^ laboratory has been opened 
on the Adantic coast to study the manage- 
ment of salt-water sport fish — the basis of 
a growing industry. 

Agriculture and Forestry — The Secretary 
of Agriculture will soon appoint an advisory 
panel of outstanding scientists to appraise 
and propose changes in the Department's 
research programs. The emphasis will be 
shifted from increasing production to prob- 
lems of soil and water, forest resources, 
forage production, watershed protection, and 
protection of plants and animals against 
pests and diseases. Economic studies to 
provide the bases for sound land and water 
resources policies and optimum land use 
adjustments will be further intensified. 

Water — An Institute of Water Research 
participated in by all water resource agen- 
cies, to be established in the Department of 
the Interior, will conduct basic research on 
surface and ground waters to develop funda- 
mental principles and facilitate improved 
translation of scientific information into 
water management practices. Concentrated 
and coordinated research programs in a 
number of agencies are being directed to 
such specific problems as desalinization of 
water, improving water quality and flood 



forecasting and preventing water evap- 
oration. 

Just as our investment of scientific talent, 
money, and time is better utilized in well 
coordinated and complementary programs 
within the Federal Government and by the 
closest working relationships with state and 
local governments, the academic community 
and industry, so our efforts should be 
meshed with those of the other countries of 
the world. Resource conservation problems 
are world-wide; efforts to solve them should 
be equally universal. This nation will con- 
tinue to cooperate in international scientific 
and research undertakings; and the useful 
information and specific technological ap- 
plications we develop — economically feasible 
desalinization of sea water, for example — 
will be made available immediately, as has 
always been our practice, to advance the 
welfare of all peoples of the world. 



CONCLUSION 



In the work of conservation, time should 
be made our friend, not our adversary. 
Actions deferred are frequendy opportuni- 
ties lost, and, in terms of financial outlay, 
dollars invested today will yield great bene- 
fits in the years to come. The progress 
made in the resources field in the first year 
of this Administration is encouraging; im- 
plementation of the new recommendations 
made today will maintain the momentum, 
enabling us to repay our debt to the past and 
meet our obligations to the future. 

John F. Kennedy 



70 Remarks at the White House to Members of the American 
Legion. March i, 1962 



Commander: 

I want to express my thanks to you and to 
the Legion. I understand that the Com- 
mander had the impression here that none 
of us wore coats around — and I drove up to 



the White House and was just getting ready 
to put my coat on and I saw this demonstra- 
tion of courage, so we're all here. 

I want to tell you how welcome you are 
to the White House, which belongs to all of 



184 



John F. Kennedy, 1962 



Mar. 



[70] 



us, and which I hope you will visit while 
you are here in Washington. This is a 
source of the greatest satisfaction. I can 
think of no group in the United States who 
is more entitled to stand in front of the 
White House and on the lawn than the 
members of the American Legion. 

As you know, this house was burned once 
by the British. During my visit in Ber- 
muda, this matter came up in the conversa- 
tion, I don't know how, but it did. And 
Prime Minister Macmillan told me about a 
British general who visited the Pentagon in 
1945 — and this is not as well known a fact, 
evidently, in Britain as it is over here — and 
he saw this plaque which commemorated 
the burning of Washington by the British, 
and the general said, "Jo^^ of Arc, yes, but 
not Washington." 

In any case, I want to tell you how wel- 
come you are as members of the American 
Legion, as former servicemen, as those par- 
ticularly interested in the well-being and the 
strength of our country. 

A free society is a critical society, and 
therefore I know you are constantly con- 
cerned about our position here and around 
the world. I think you should take some 
satisfaction, though, as Americans, in realiz- 
ing how great are the burdens which this 
country has borne since, really, 1941 — and 
in many ways since 1945. We carry the 
major share of the responsibility and the 
burdens for the defense of Europe — in Berlin 
itself — we bear the major share of the bur- 
den in the defense of southeast Asia, in the 
other side of the world. The United States 
contributes of its wealth and resources to the 
fight for freedom in our own hemisphere, 
in the countries to the south of us. We bear 
a major burden in Africa itself — in the 
Middle East — in India and Pakistan. We 
assist countries stretching all the way from 
Berlin around to Saigon to maintain their 
independence under great pressure — Greece 
and Turkey, Iran, Pakistan, Thailand, Viet- 
Nam, the Republic of China, South Korea, 
the Philippines, and others. 



This is a tremendous burden which falls 
upon the United States and the people of this 
country. We are only 6 percent of the 
world's population and yet we carry this 
struggle in all parts of the globe. So no 
American citizen should feel in any way 
that this country is not making a major 
effort to maintain the cause of freedom 
around the globe. 

This is a heavy burden which falls upon 
all of us, but I don't think that there is any 
citizen of this country, and certainly no 
member of the American Legion, who 
wishes to relax that burden, who feels that 
we have carried it long enough, who feels 
that now others should pick it up. 

We want others to bear their proportionate 
share of the burden but we do not suggest 
that we in the United States should fail or 
flinch or become fatigued. 

There is no easy solution. There is no 
step we can take which can immediately 
bring an end to our burdens and struggle. 
But over the time, and those of you who 
served in the First War and the Second War 
know that what really counts is not the im- 
mediate act of courage or of valor, but those 
who bear the struggle day in and day out — 
not the sunshine patriots but those who are 
willing to stand for a long period of time. 

That is what constitutes, in my opinion, 
the real courage, and I am sure that those 
of you in the Legion who have been devoted 
to the interests of your country over a long 
time share that conviction. 

So as I said a year ago in assuming the 
Presidency, no generation has ever borne a 
greater responsibility than this generation, 
and as a member of it I welcome that re- 
sponsibility — because it puts us in the front 
line of the most important fight in the 
world, and that is the fight for the main- 
tenance of the security of the United States 
and to assist others who also want to be free. 

So I welcome you to Washington. You 
are standing on ground which is your own — 
and on which you have every right to stand. 
I am honored by the Legion, and I appreciate 



715-405 0—64^ 



-16 



185 



[70] Mar. 



Public Papers of the Presidents 



very much this chance to extend the hand 
of welcome and of friendship to my com- 
rades of the Legion. 
Thank you. 



note: The President spoke on the South Lawn at 
the White House following the presentation to him 
of the American Legion's Distinguished Service 
Medal by Charles L. Bacon, National Commander 
of the American Legion. 



71 Radio and Television Address to the American People: 
"Nuclear Testing and Disarmament." March 2, 1962 

[ Delivered from the President's office at 7 p.m. ] 



Good evening: 

Seventeen years ago man unleashed the 
power of the atom. He thereby took into his 
mortal hands the power of self-extinction. 
Throughout the years that have followed, 
under three successive Presidents, the United 
States has sought to banish this weapon from 
the arsenals of individual nations. For of 
all the awesome responsibilities entrusted to 
this office, none is more somber to contem- 
plate than the special statutory authority to 
employ nuclear arms in the defense of our 
people and freedom. 

But until mankind has banished both war 
and its instruments of destruction, the 
United States must maintain an effective 
quantity and quality of nuclear weapons, so 
deployed and protected as to be capable of 
surviving any surprise attack and devastat- 
ing the attacker. Only through such 
strength can we be certain of deterring a 
nuclear strike, or an overwhelming ground 
attack, upon our forces and our allies. Only 
through such strength can we in the free 
world — should that deterrent fail — ^face the 
tragedy of another war with any hope of 
survival. And that deterrent strength, if it 
is to be effective and credible when com- 
pared with that of any other nation, must 
embody the most modern, the most reliable 
and the most versatile nuclear weapons our 
research and development can produce. 

The testing of new weapons and their 
effects is necessarily a part of that research 
and development process. Without tests — 
to experiment and verify — ^progress is 
limited. A nation which is refraining from 



tests obviously cannot match the gains of a 
nation conducting tests. And when all 
nuclear powers refrain from testing, the 
nuclear arms race is held in check. 

That is why this Nation has long urged 
an effective worldwide end to nuclear tests. 
And this is why in 1958 we voluntarily sub- 
scribed, as did the Soviet Union, to a nuclear 
test moratorium, during which neither side 
would conduct new nuclear tests, and both 
East and West would seek concrete plans 
for their control. 

But on September first of last year, while 
the United States and the United Kingdom 
were negotiating in good faith at Geneva, 
the Soviet Union callously broke its mora- 
torium with a two month series of tests of 
more than 40 nuclear weapons. Prepara- 
tions for these tests had been secredy under- 
way for many months. Accompanied by 
new threats and new tactics of terror, these 
tests — conducted mostly in the atmosphere — 
represented a major Soviet effort to put 
nuclear weapons back into the arms race. 

Once it was apparent that new appeals 
and proposals were to no avail, I authorized 
on September fifth a resumption of U.S. 
nuclear tests underground, and I announced 
on November second — before the close of 
the Soviet series — that preparations were 
being ordered for a resumption of atmos- 
pheric tests, and that we would make what- 
ever tests our security required in the light 
of Soviet gains. 

This week, the National Security Council 
of the United States has completed its review 
of this subject. The scope of the Soviet tests 



186 



John F. Kennedy, 7962 



Mar. 2 [71] 



has been carefully reviewed by the most 
competent scientists in the country. The 
scope and justification of proposed Amer- 
ican tests have been carefully reviewed, de- 
termining which experiments can be safely 
deferred, which can be deleted, which can 
be combined or conducted underground, 
and which are essential to our military and 
scientific progress. Careful attention has 
been given to the limiting of radioactive 
fallout, to the future course of arms control 
diplomacy, and to our obligations to other 
nations. 

Every alternative was examined. Every 
avenue of obtaining Soviet agreement was 
explored. We were determined not to rush 
into imitating their tests. And we were 
equally determined to do only what our own 
security required us to do. Although the 
complex preparations have continued at 
full speed while these facts were being un- 
covered, no single decision of this Adminis- 
tration has been more thoroughly or more 
thoughtfully weighed. 

Having carefully considered these find- 
ings — having received the unanimous rec- 
ommendations of the pertinent department 
and agency heads — and having observed the 
Soviet Union's refusal .to accept any agree- 
ment which would inhibit its freedom to test 
extensively after preparing secretly — ^I have 
today authorized the Atomic Energy Com- 
mission and the Department of Defense to 
conduct a series of nuclear tests — ^beginning 
when our preparations are completed, in the 
latter part of April, and to be concluded as 
quickly as possible (within two or three 
months) — ^such series, involving only those 
tests which cannot be held underground, to 
take place in the atmosphere over the Pacific 
Ocean. 

These tests are to be conducted under 
conditions which restrict the radioactive 
fallout to an absolute minimum, far less 
than the contamination created by last fall's 
Soviet series. By paying careful attention 
to location, wind and weather conditions. 



and by holding these tests over the open seas, 
we intend to rule out any problem of fallout 
in the immediate area of testing. Moreover, 
we will hold the increase in radiation in the 
Northern Hemisphere, where nearly all such 
fallout will occur, to a very low level. 

Natural radioactivity, as everyone knows, 
has always been a part of the air around 
us, with certain long-range biological effects. 
By conservative estimate, the total effects 
from this test series will be roughly equal 
to only I percent of those due to this natural 
background. It has been estimated, in fact, 
that the exposure due to radioactivity from 
these tests will be less than %o of ^^ dif- 
ference which can be experienced, due to 
variations in natural radioactivity, simply by 
living in different locations in our own coun- 
try. This will obviously be well within the 
guides for general population health and 
safety, as set by the Federal Radiation Coun- 
cil; and considerably less than %o ^f ^ 
percent of the exposure guides set for adults 
who work with industrial radioactivity. 

Nevertheless, I find it deeply regrettable 
that any radioactive material must be added 
to the atmosphere — that even one additional 
individual's health may be risked in the 
foreseeable future. And however remote 
and infinitesimal those hazards may be, I 
still exceedingly regret the necessity of bal- 
ancing these hazards against the hazards to 
hundreds of millions of lives which would 
be created by any relative decline in our 
nuclear strength. 

In the absence of any major shift in Soviet 
policies, no American President — respon- 
sible for the freedom and the safety of so 
many people — could in good faith make any 
other decision. But because our nuclear 
posture affects the security of all Americans 
and all free men — ^because this issue has 
aroused such widespread concern — I want to 
shzxt with you and all the world, to the 
fullest extent our security permits, all of the 
facts and the thoughts which have gone into 
this decision. 



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[71] Mar. 2 



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Many of these facts are hard to explain in 
simple terms — ^many are hard to face in a 
peaceful world — but these are facts which 
must be faced and must be understood. 



Had the Soviet tests of last fall merely 
reflected a new effort in intimidation and 
bluff, our security would not have been af- 
fected. But in fact they also reflected a 
highly sophisticated technology, the trial of 
novel designs and techniques, and some sub- 
stantial gains in weaponry. Many of these 
tests were aimed at improving their defenses 
against missiles — others were proof tests, 
trying out existing weapons systems — ^but 
over one-half emphasized the development 
of new weapons, particularly those of greater 
explosive power. 

A primary purpose of these tests was the 
development of warheads which weigh very 
litde compared to the destructive efficiency 
of their thermonuclear yield. One Soviet 
test weapon exploded with the force of 58 
megatons — the equivalent of 58 million tons 
of TNT. This was a reduced-yield version 
of their much-publicized hundred-megaton 
bomb. Today, Soviet missiles do not appear 
able to carry so heavy a warhead. But there 
is no avoiding the fact that other Soviet 
tests, in the i to 5 megaton range and up, 
were aimed at unleashing increased destruc- 
tive power in warheads actually capable of 
delivery by existing missiles. 

Much has also been said about Soviet 
claims for an anti-missile missile. Some of 
the Soviet tests which measured the effects 
of high altitude nuclear explosion — in one 
case over 100 miles high — were related to 
this problem. While apparently seeking in- 
formation on the effects of nuclear blasts on 
radar and communication, which is impor- 
tant in developing an anti-missile defense 
system, these tests did not, in our judgment, 
reflect a developed system. 

In short, last fall's tests, in and by them- 
selves, did not give the Soviet Union superi- 
ority in nuclear power. They did, however, 



provide the Soviet laboratories with a mass 
of data and experience on which, over the 
next two or three years, they can base signifi- 
cant analyses, experiments and extrapola- 
tions, preparing for the next test series which 
would confirm and advance their findings. 
And I must report to you in all candor 
that further Soviet tests, in the absence of 
further Western progress, could well pro- 
vide the Soviet Union with a nuclear attack 
and defense capability so powerful as to 
encourage aggressive designs. Were we to 
stand still while the Soviets surpassed us — 
or even appeared to surpass us — the Free 
World's ability to deter, to survive and to 
respond to an all-out attack would be seri- 
ously weakened. 



III. 

The fact of the matter is that we cannot 
make similar strides without testing in the 
atmosphere as well as underground. For, in 
many areas of nuclear weapons research, 
we have reached the point where our prog- 
ress is stifled without experiments in every 
environment. The information from our 
last series of atmospheric tests in 1958 has 
all been analyzed and re-analyzed. It can- 
not tell us more without new data. And it 
is in these very areas of research — missile 
penetration and missile defense — that fur- 
ther major Soviet tests, in the absence of 
furtlier Western tests, might endanger our 
deterrent. 

In addition to proof tests of existing sys- 
tems, two different types of tests have there- 
fore been decided upon. The first and most 
important are called "effects tests" — deter- 
mining what effect an enemy nuclear explo- 
sion would have upon our ability to survive 
and respond. We are spending great sums 
of money on radar to alert our defenses and 
to develop possible anti-missile systems — on 
the communications which enable our com- 
mand and control centers to direct a re- 
sponse — on hardening our missiles sites, 
shielding our missiles and warheads from 
defensive action, and providing them with 



188 



John F. Kennedy, 7962 



Mar. 2 [71] 



electronic guidance systems to find their 
targets. But we cannot be certain how 
much of this preparation will turn out to be 
useless: blacked out, paralyzed or destroyed 
by the complex effects of a nuclear explosion. 

We know enough from earlier tests to be 
concerned about such phenomena. We 
know that the Soviets conducted such tests 
last fall. But until we measure the effects of 
actual explosions in the atmosphere under 
realistic conditions, we will not know pre- 
cisely how to prepare our future defenses, 
how best to equip our missiles for penetra- 
tion of an anti-missile system, or whether it 
is possible to achieve such a system for 
ourselves. 

Secondly, we must test in the atmosphere 
to permit the development of those more 
advanced concepts and more effective, effi- 
cient weapons which, in the light of Soviet 
tests, are deemed essential to our security. 
Nuclear weapons technology is a constantly 
changing field. If our weapons are to be 
more secure, more flexible in their use and 
more selective in their impact — if we are to 
be alert to new breakthroughs, to experiment 
with new designs — if we are to maintain 
our scientific momentum and leadership — 
then our weapons progress must not be 
limited to theory or to the confines of 
laboratories and caves. 

This series is designed to lead to many 
important, if not always dramatic, results. 
Improving the nuclear yield per pound of 
weight in our weapons will make them 
easier to move, protect and fire — more likely 
to survive a surprise attack — and more ade- 
quate for effective retaliation. It will also, 
even more importantly, enable us to add to 
our missiles certain penetration aids and 
decoys, and to make those missiles effective 
at high altitude detonations, in order to 
render ineffective any anti-missile or inter- 
ceptor system an enemy might some day 
develop. 

Whenever possible, these development 
tests will be held underground. But the 
larger explosions can only be tested in the 
atmosphere. And while our technology in 



smaller weapons is unmatched, we now 
know that the Soviets have made major 
gains in developing larger weapons of low- 
weight and high explosive content — of i to 
5 megatons and upward. Fourteen of their 
tests last fall were in this category, for a 
total of 30 such tests over the years. The 
United States, on the other hand, had con- 
ducted, prior to the moratorium, a total of 
only 20 tests within this megaton range. 



While we will be conducting far fewer 
tests than the Soviets, with far less fallout, 
there will still be those in other countries 
who will urge us to refrain from testing at 
all. Perhaps they forget that this country 
long refrained from testing, and sought to 
ban all tests, while the Soviets were secretly 
preparing new explosions. Perhaps they 
forget the Soviet threats of last autumn and 
their arbitrary rejection of all appeals and 
proposals, from both the United States and 
the United Nations. But those free peoples 
who value their freedom and their security, 
and look to our relative strength to shield 
them from danger — those who know of our 
good faith in seeking an end to testing and 
an end to the arms race — will, I am confi- 
dent, want the United States to do whatever 
it must do to deter the threat of aggression. 

If they felt we could be swayed by threats 
or intimidation — if they thought we could 
permit a repetition of last summer's dece{>- 
tion — then surely they would lose faith in 
our will and our wisdom as well as our 
weaponry. I have no doubt that most of our 
friends around the world have shared my 
own hope that we would never find it nec- 
essary to test again — and my own belief that, 
in the long run, the only real security in 
this age of nuclear peril rests not in arma- 
ment but in disarmament. But I am equally 
certain that they would insist on our testing 
once that is deemed necessary to protect free 
world security. They know we are not 
deciding to test for political or psychological 
reasons — and they also know that we cannot 



189 



[yij Mar. 2 



Public Papers of the Presidents 



avoid such tests for political or psychological 
reasons. 



The leaders of the Soviet Union are also 
watching this decision. Should we fail to 
follow the dictates of our own security, they 
will chalk it up, not to goodwill, but to a 
failure of will — not to our confidence in 
Western superiority, but to our fear of world 
opinion, the very world opinion for which 
they showed such contempt. They could 
well be encouraged by such signs of weak- 
ness to seek another period of no testing 
without controls — another opportunity for 
stifling our progress while secretly preparing, 
on the basis of last fall's experiments, for the 
new test series which might alter the balance 
of power. With such a one-sided advantage, 
why would they change their strategy, or 
refrain from testing, merely because we 
refrained? Why would they want to halt 
their drive to surpass us in nuclear tech- 
nology? And why would they ever con- 
sider accepting a true test ban or mutual 
disarmament? 

Our reasons for testing and our peaceful 
intentions are clear — so clear that even the 
Soviets could not objectively regard our 
resumption of tests, following their own 
resumption of tests, as provocative or pre- 
paratory for war. On the contrary, it is my 
hope that the prospects for peace may ac- 
tually be strengthened by this decision — once 
the Soviet leaders realize that the West will 
no longer stand still, negotiating in good 
faith, while they reject inspection and are 
free to prepare for further tests. As new 
disarmament talks approach, the basic les- 
son of some three years and 353 negotiating 
sessions at Geneva is this — that the Soviets 
will not agree to an effective ban on nuclear 
tests as long as a new series of offers and 
prolonged negotiations, or a new unin- 
spected moratorium, or a new agreement 
without controls, would enable them once 
again to prevent the West from testing 
while they prepare in secret. 



But inasmuch as this choice is now no 
longer open to them, let us hope that they 
will take a different attitude on banning 
nuclear tests — that they will prefer to see 
the nuclear arms race checked instead of 
intensified, with all the dangers that that 
intensification brings: the spread of nuclear 
weapons to other nations; the constant 
increase in world tensions; the steady 
decrease in all prospects for disarmament; 
and, with it, a steady decrease in the security 
of us all. 



If the Soviets should change their position, 
we will have an opportunity to learn it 
immediately. On the 14th of March, in 
Geneva, Switzerland, a new i8-power con- 
ference on disarmament will begin. A 
statement of agreed principles has been 
worked out with the Soviets and endorsed 
by the U.N. In the long run, it is the 
constructive possibilities of this conference — 
and not the testing of new destructive 
weapons — on which rest the hopes of all 
mankind. However dim those hopes may 
sometimes seem, they can never be aban- 
doned. And however far-off most steps 
toward disarmament appear, there are some 
that can be taken at once. 

The United States will offer at the Geneva 
conference — not in the advance expectation 
they will be rejected, and not merely for 
purposes of propaganda — a series of concrete 
plans for a major "breakthrough to peace." 
We hope and believe that they will appeal 
to all nations opposed to war. They will 
include specific proposals for fair and en- 
forceable agreements: to halt the production 
of fissionable materials and nuclear weapons 
and their transfer to other nations — to con- 
vert them from weapon stockpiles to peace- 
able uses — to destroy the warheads and the 
delivery systems that threaten man's exist- 
ence — to check the dangers of surprise and 
accidental attack — to reserve outer space for 
peaceful use — and progressively to reduce 
all armed forces in such a way as ultimately 



190 



John F, Kennedy, ig62 



Mar. 2 [71] 



to remove forever all threats and thoughts 
of war. 

And of greatest importance to our discus- 
sion tonight, we shall, in association with the 
United Kingdom, present once again our 
proposals for a separate comprehensive 
treaty — with appropriate arrangements for 
detection and verification — to halt per- 
manently the testing of all nuclear weapons, 
in every environment: in the air, in outer 
space, under ground and under water. New 
modifications will also be offered in the light 
of new experience. 

The essential arguments and facts relating 
to such a treaty are well-known to the Soviet 
Union. There is no need for further repeti- 
tion, propaganda or delay. The fact that 
both sides have decided to resume testing 
only emphasizes the need for new agree- 
ment, not new argument. And before 
charging that this decision shatters all hopes 
for agreement, the Soviets should recall that 
we were willing to work out with them, for 
joint submission to the United Nations, an 
agreed statement of disarmament principles 
at the very time their autumn tests were 
being conducted. And Mr. Khrushchev 
knows, as he said in i960, that any nation 
which broke the moratorium could expect 
other nations to be "forced to take the same 
road." 

Our negotiators will be ready to talk 
about this treaty even before the Conference 
begins on March 14th — and they will be 
ready to sign well before the date on which 
our tests are ready to begin. That date is 
still nearly two months away. If the Soviet 
Union should now be willing to accept such 
a treaty, to sign it before the latter part 
of April, and apply it immediately — ^if all 
testing can thus be actually halted — then the 
nuclear arms race would be slowed down 
at last — the security of the United States and 
its ability to meet its commitments would 
be safeguarded — and there would be no 
need for our tests to begin. 

But this must be a fully effective treaty. 
We know now enough about broken nego- 
tiations, secret preparations, and the advan- 



tages gained from a long test series never 
to offer again an uninspected moratorium. 
Some may urge us to try it again, keeping 
our preparations to test in a constant state of 
readiness. But in actual practice, particu- 
larly in a society of free choice, we cannot 
keep top-flight scientists concentrating on 
the preparation of an experiment which may 
or may not take place on an uncertain date 
in the undefined future. Nor can large 
technical laboratories be kept fully alert on 
a stand-by basis waiting for some other 
nation to break an agreement. This is not 
merely difficult or inconvenient — we have 
explored this alternative thoroughly, and 
found it impossible of execution. 

In short, in the absence of a firm agree- 
ment that would halt nuclear tests by the 
latter part of April, we shall go ahead with 
our talks — striving for some new avenue of 
agreement — but we shall also go ahead with 
our tests. If, on the other hand, the Soviet 
Union should accept such a treaty in the 
opening month of talks, that single step 
would be a monumental step toward peace — 
and both Prime Minister Macmillan and I 
would think it fitting to meet Chairman 
Khrushchev at Geneva to sign the final 
pact. 

VII. 

For our ultimate objective is not to test 
for the sake of testing. Our real objective 
is to make our own tests unnecessary, to 
prevent others from testing, to prevent the 
nuclear arms race from mushrooming out 
of control, to take the first steps toward 
general and complete disarmament. And 
that is why, in the last analysis, it is the 
leaders of the Soviet Union who must bear 
the heavy responsibility of choosing, in the 
weeks that lie ahead, whether we proceed 
with these steps — or proceed with new tests. 

If they are convinced that their interests 
can no longer be served by the present 
course of events, then it is my fervent hope 
that they will agree to an effective treaty. 
But if they persist in rejecting all means of 



191 



[71] Mar. 2 



Public Papers of the Presidents 



true inspection, then we shall be left with 
no choice but to keep our own defensives 
arsenal adequate for the security of all free 
men. 

It is our hope and prayer that these grim, 
unwelcome tests will never have to be 
made — that these deadly weapons will never 
have to be fired — and that our preparations 
for war will bring about the preservation of 



peace. Our foremost aim is the control of 
force, not the pursuit of force, in a world 
made safe for mankind. But whatever the 
future brings, I am sworn to uphold and 
defend the freedom of the American 
people — and I intend to do whatever must 
be done to fulfill that solemn obligation. 
Thank you — and good night. 



72 Letter to the President of the Senate and to the Speaker 
of the House Proposing To Amend the Small Business Act. 
March 5, 1962 

greatest number of businesses in the United 
States and plays a key part in the economic 
life of our nation. Under the current ad- 
ministration, that agency has vigorously ex- 
panded its assistance to the small business 
community by increasing significantly the 
number of small businesses assisted by its 
programs of business loans, loans to small 
business investment companies and State and 
local development companies, procurement 
and technical assistance, and management 
assistance. 

It is now time to remove the unnecessary 
statutory limitation on appropriations and 
on usage of appropriated funds which has 
resulted in uncertainty regarding the future 
of these programs and necessitated a double 
congressional review of funds. 

In no respect would the proposed amend- 
ment diminish the controls which the Con- 
gress presently exercises over the size and 
character of the programs administered by 
the Small Business Administration, pursuant 
to the Small Business Act and the Small 
Business Investment Act of 1958. These two 
statutes and the operations of the agency are 
under frequent study in Congress. Since 
1953, when the agency was established, 
amendments have been made to either or 
both of basic statutes in every year except 
two. Indeed, each has undergone numerous 
and substantial revisions. There is no rea- 
son to expect that this legislative activity 



Dear Mr, : 

I am transmitting herewith for appropri- 
ate reference a bill to amend section 4(c) of 
the Small Business Act, as amended. This 
section deals with the revolving fund of the 
Small Business Administration, out of 
which are financed that agency's programs 
of financial assistance to the small business 
community. 

This bill would place the fund on a more 
permanent basis and eliminate unnecessary 
duplication, by removing the statutory limi- 
tation on authorizations to appropriate to 
the fund and the separate limitations on the 
amounts of appropriated funds which may 
be utilized for each of the Small Busmess 
Administration's financial assistance pro- 
grams. Utilization of funds for these pro- 
grams would of course continue to be con- 
trolled by the Congress through the normal 
appropriation process, and the House and 
Senate Appropriations, Banking and Cur- 
rency, and Small Business Committees 
would continue to exercise the same degree 
of cognizance as they do now regarding the 
operations of the Small Business Adminis- 
tration. 

By making the Small Business Adminis- 
tration a permanent agency of the Govern- 
ment in 1958, the Congress wisely recog- 
nized the important role that this agency has 
played in assisting the small business sector 
of our economy, which comprises by far the 



192 



]ohn F. Kennedy, 7962 



Mar. 6 [73] 



with its attendant scrutiny of the agency's 
operations by the Banking and Currency 
Committees will diminish. 

Moreover, the progress of the Small Busi- 
ness Administration in discharging its stat- 
utory duties is under the continuing obser- 
vation of the Senate and House Small Busi- 
ness Committees. At least once a year each 
of these committees holds hearings at which 
the Administrator of the Small Business 
Administration testifies in detail concerning 
the operations of his agency. The resulting 
reports issued by"^ the committees contain 
thorough reviews of the agency's programs 
and evaluations of its success in conducting 
them. 

Finally, in the course of the budgetary 
process, the agency's activities are reviewed 
annually by the Appropriations Committees 
and the Congress to determine the amount 
of additional capital for the revolving fund 
which the agency will require to carry out 
its financial assistance programs. 

However, the necessity for obtaining stat- 
utory authorization for additional appro- 
priations virtually every year before Congress 
can appropriate funds in the regular appro- 
priation act creates unnecessary duplication 
and confusion. During the last session of 
the Congress four separate statutes provided 



increased authorizations to appropriate to 
the SBA revolving fund, in addition to the 
actual appropriations themselves contained 
in the regular appropriation act and a sup- 
plemental appropriation act. Sound budget- 
ary procedures argue against this type of 
duplication and repetitive review over an 
agency which the Congress has declared to 
be a permanent one and over programs 
which serve such an important purpose in 
assisting our small business community. 

The proposed legislation would also 
simplify the method of computing the inter- 
est payable from the revolving fund to the 
Treasury, and would effect a number of 
clarifications in the language of the Act. 
A detailed analysis of the bill is attached. 

It is my hope that the Congress will con- 
sider this proposal promptly and that the bill 
will be enacted into law. 
Sincerely, 

John F. Kennedy 

note: This is the text of identical letters addressed 
to the Honorable Lyndon B. Johnson, President of 
the Senate, and to the Honorable John W. McCor- 
mack. Speaker of the House of Representatives. 

On July 25, the President approved an amend- 
ment to the Small Business Act providing for an 
increase in the revolving fund of the Small Business 
Administration (Public Law 87-550, 76 Stat. 220). 



73 Message to Chairman Khrushchev Concerning the Opening 
of the Geneva Disarmament Negotiations. March 6, 1962 

[Released March 6, 1962. Dated March 5, 1962] 



Dear Mr, Chairman: 

I have received your message of March 3, 
and I am glad to know of your agreement 
that the rneeting in Geneva on March 14 
should be opened by Foreign Ministers. I 
am particularly glad that Mr. Gromyko will 
be able to join with Lord Home and Secre- 
tary Rusk before the meeting for prelimi- 
nary discussions; our hope is that these con- 
versations might begin on March 12. It will 
be the purpose of the representatives of the 



United States, headed by Secretary Rusk, to 
make every possible effort to find paths 
toward disarmament. 

Our object now must be to make real 
progress toward disarmament, and not to 
engage in sterile exchanges of propaganda. 
In that spirit, I shall not undertake at this 
time to comment on the many sentiments in 
your letter with which, as I am sure you 
know, the United States Government cannot 
agree. Let us, instead, join in giving our 



193 



[73] Mar. 6 



Public Papers of the Presidents 



close personal support and direction to the 
work of our representatives, and let us join 
in working for their success. 
Sincerely yours, 

John F. Kennedy 



note: Chairman Khrushchev's letter of March 3 is 
pubUshed in the Department of State Bulletin (vol. 
46, p. 494). 



74 Remarks at the i8th Annual Washington Conference of 
the Advertising Council. March 7, 1962 



Gentlemen, Mr, Webb, Mr. Bundy: 

I want to express my great appreciation to 
you on behalf of the people of this country 
for your being here, and also for the effort 
that you are putting in, in the Advertising 
Council, in a very high form of public 
service. 

This effort was started i8 years ago, dur- 
ing the wartime administration of Franklin 
Roosevelt, and I am sure that there is no one 
here who would suggest that the need for 
your services are less critical today than they 
were then. 

This is a free society and a free economy, 
and we do believe that freedom and, really, 
progress is best served by permitting people 
to advance their private interests, and the 
combination of this great effort, we believe, 
advances the public interest. But I don't 
think that there's any American who would 
stop there and feel that the public interest is 
served alone by serving one's private interest. 

I think all of us have a public obligation, 
all of us owe some of our lives and some of 
our effort to the advancement of the interests 
of our society, particularly when our society 
bears such heavy burdens as it does here and 
around the world. And therefore, your 
willingness — as advertisers, as businessmen, 
as publishers, as television owners and pro- 
ducers — ^your willingness to devote, as you 
did last year, $ioo million to the advance- 
ment of public causes is gready appreciated. 
It is a real service. You have every reason 
to feel that it performs a worthy national 
purpose. The fact that so many members of 



this administration, I think the entire 
Cabinet, have come here indicates, I hope, 
in some degree our appreciation of what you 
are trying to do. 

I hope this year you will devote yourselves 
especially as private citizens and also as 
members of this Council to the program 
that we have suggested for advancing our 
trade program, particularly our ties with 
Western Europe. We have a great story to 
tell, and I am hopeful that as Western 
Europe, which has really come out of the 
ashes in such a short time, and the tremen- 
dous vitality of the United States, and that 
of Japan, if tied closer and closer together, 
can serve as a valuable base from which we 
can expand the cause of freedom around the 
world. 

None of us who believes in freedom can 
help but be impressed and convinced more 
than ever of the essential vigor of our cause 
than to compare West Germany and East 
Germany, Japan and China, West Berlin 
and East Berlin. The story is very clearly 
told. Chairman Khrushchev made a long 
speech and has difficult agricultural prob- 
lems. And so do we. But I certainly would 
not exchange ours. With 8 percent of the 
population of our country on agriculture, 
our problem is overproduction. With a 
much larger percentage of the population on 
his farms, his problem is underproduction. 

So that this is a great system and a great 
cause with which we are identified, and I 
am especially anxious, both from our own 
economic interests — agriculture, labor and 



194 



John F. Kennedy, ig62 



Mar. 7 [74] 



business — that we become more intimately 
associated with the great effort which is 
being made in Europe. 

We, after all, played a large role in build- 
ing that economy. We have, as you know, 
talked a good deal about the Alliance for 
Progress, but in the short space of 3 or 4 
years we put over thirteen and a half billion 
dollars into building Europe. And now 
Europe is becoming stronger. Its economic 
growth rate is almost double ours, in Ger- 
many, France, and Italy. 

We want to maintain, both for economic 
and political reasons, the closest association 
with Europe, and stretching the other way 
with Japan. And therefore, this program is 
important. It is a bipartisan program. It 
has had the support of men like Christian 
Herter and Will Clayton. It has had the 
general endorsement of men like President 
Eisenhower and Henry Cabot Lodge, and 
others. It is not a matter which should 
separate us on the basis of party, but is a 
matter which I think concerns us all as 
Americans and as people who believe in the 
development of our country. 

So that I hope that you will, after analyz- 
ing it, recognizing that there are disadvan- 
tages to every proposal, recognize that in 
this case the advantages far outweigh any 
disadvantages, and that it is a method of 
strengthening our country, strengthening it 
in the fight to preserve it, and also strength- 
ening our opportunities. 

And it is, I believe, a most vital matter in 
the coming year. It is not a matter which 
has great political appeal, perhaps, to either 
party, but it is a matter which is of basic 
importance to the United States and, as 
influential leaders of the United States, 
deserves your interest and I hope will merit 
your support. 

We live in a difficult time, and our prob- 
lems are difficult, and I know many Amer- 
icans get discouraged, and also are concerned 
with whether we are doing enough in many 



areas of the world. My strong feeling is 
that the people of this country are not fully 
aware of what a tremendous burden we 
really carry, and really how pleased we 
should be and proud of the tremendous ef- 
fort which we make to sustain freedom in 
so many places. 

We make a tremendous contribution, even 
today, to the defense of Western Europe — 
even at great cost to ourselves. Our bal- 
ance of payments problem would disappear 
overnight if it were not for the effort which 
we are making in Europe and other places 
around the world to permit those areas to 
maintain their freedom. 

When we are on occasions lectured to by 
others about getting our house in order, I 
would remind them that if the United States 
had been concerned only with that problem 
and not with the defense of freedom, that 
the balance of trade has been in our favor 
every year with the exception of i year in 
the last 10 or 15 years, and gold could pour 
into our coffers — and what we do in Western 
Europe which is a prosperous area — ^we are 
carrying a load in Latin America — we carry 
a great load in Africa — we carry a great 
load in Asia — Greece, Turkey, Iran, Pak- 
istan, India, Thailand, Viet-Nam, the Re- 
public of China — all the way up to South 
Korea. And even in those areas where we 
are joined by others in a consortium, it is 
the United States that bears by far the major 
burden. So that we need apologize to none. 

What we hope is that our example of 
effort over the period of 15 years since the 
Marshall plan will inspire others to join 
with us, particularly those who are now 
prosperous, in an effort to permit newly 
independent states to develop and maintain 
their independence. 

So that as an American I am proud of the 
effort that this country has made. It is 
almost unprecedented. We don't seek satel- 
lites but friends. None of our efforts, really, 
in the area I was just talking about, is di- 



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[74] Mar. 7 



Public Papers of the Presidents 



rected to an economic advantage to us. We 
seek the association of others. We welcome 
them. We hope that all will recognize what 
we recognized 15 years ago, that if a few 
are prosperous and many are poor, the 
stability of the world will be endangered. 
I want to express my thanks to you again. 
You are performing a public service, and in 
these days it is an obligation on us all to do 
that. And I only wanted you to know that 
your efforts are appreciated — are known — 



and that you can feel satisfaction that you 
have lifted your hand on behalf of your 
country at a time when it needed your help. 
Thank you. 

note: The President spoke at lo a.m. in the District 
Red Cross Building. His opening words "Mr. Webb, 
Mr. Bundy" referred to James E. Webb, Adminis- 
trator, National Aeronautics and Space Adminis- 
tration, who also addressed the conference, and to 
McGeorge Bundy, Special Assistant to the President, 
who served as moderator. 



75 The President's News Conference of 
March 7, 1962 



THE PRESIDENT. Thank you. I have two an- 
nouncements. 

[i.] I have today sent the following tele- 
gram to the chief executive officers of the 
major steel companies and to the president 
of the Steel workers Union, and I quote: 

"I appreciate your willingness to com- 
mence negotiations early and I share your 
regrets that the parties to the steel labor 
negotiations were unable to conclude a settle- 
ment in their negotiations of the past few 
weeks, despite earnestness and good will on 
both sides. The present temporary recess 
should enable both parties to reappraise their 
position. The best way to achieve a desir- 
able settlement in the public interest is 
through free and responsible collective bar- 
gaining. An early labor settlement consist- 
ent with price stability in steel would be in 
the public interest, as well as in the interest 
of the parties themselves. The Nation as a 
whole I am sure shares my conviction that 
such an agreement would materially 
strengthen our economy and country. To 
this end I am requesting the parties to re- 
sume collective bargaining at an early date. 
I hope they will be able to meet together by 
next Wednesday, March 14." 

[2.] The second announcement is that I 
want to comment on the tariff and trade 
agreements which have just been concluded 
at Geneva with the European Common 
Market, the United Kingdom, and 24 other 



countries following the largest and most 
complex negotiations in history. The 
specific details of the agreements we reached 
in the negotiations will be available this 
afternoon. 

In summary, we obtained from the Com- 
mon Market and other countries tariff reduc- 
tions and commitments not to increase duties 
on $4.3 billion worth of annual exports. In 
return we granted similar concessions or 
gave up concessions previously accorded us 
on $2.9 billion of annual imports. These 
agreements were very satisfactory and very 
important. We obtained new concessions, 
both industrial and agricultural, on those 
very items which are most essential to the 
maintenance and expansion of our foreign 
trade, our export markets, and our effort to 
sell abroad to offset our balance of payments 
losses. 

This was a good indication, moreover, 
that the United States and the Common 
Market will be able to work together and 
bargain together. Due to the limited bar- 
gaining authority we had under the present 
law, it was necessary to breach the peril 
points in a number of cases to avoid a com- 
plete breakdown in negotiations and to ob- 
tain worthwhile concessions for our own 
businessmen and farmers, but every effort 
was made to restrict such breaches to items 
that would not have significant impact upon 
the American economy. 



196 



John F. Kennedy, 7962 



Mar. 7 [75] 



These agreements, however, are as far 
as we can go until new legislation is enacted. 
The real opportunities offered us by the 
Common' Market, and to the people of 
Europe, and the competitive challenge it 
presents to our enterprise system — all this 
is still ahead, and will always be beyond our 
reach, with all of the adverse effects it will 
have on our economy, unless a strong trade 
expansion act gives our negotiators the au- 
thority they need to speak for our country 
in these most important matters. 

[3.] Q. Mr. President, in connection 
with your speech last week on nuclear test 
resumption and the forthcoming negotia- 
tions in Geneva, do you think the American 
public and the public of the world is justi- 
fied in attaching to the Geneva negotiations 
any particular hope or expectation that these 
negotiations will be more fruitful than sim- 
ilar meetings with the Russians in the past? 

THE PRESIDENT. Well, I am sure they 
attach hope. Expectations is perhaps another 
matter. But hope should certainly be 
attached because these — this meeting is 
extremely important. I am not making 
optimistic predictions about its success, but 
I could make pessimistic predictions about 
its failure. 

So that we go to the conference trying to 
get an accord. That is our interest. We 
believe it's in the best interest of the United 
States, the security interests of the United 
States as well as the security interests, really, 
of the entire world. So we just have to wait 
and see. But we're going there with a 
genuine effort because we believe it's most 
desirable to reach an agreement with the 
Soviet Union. Anyone who has read the 
history of the 20th century knows that in- 
creases of tensions, especially those which 
are worldwide, which engage great powers, 
are always dangerous, and when new and 
unprecedented weapons are thrown into 
this mix it makes anyone hopeful about 
Geneva, and the consequent easing of the 
tensions which would come from an accord. 

[4.] Q. Mr. President, Mr. Khrushchev 
has recently stated in meetings at Moscow 



that his country is suffering quite a bit 
from a lack of food. Now, regardless of 
whether they ask or not, have you considered 
the possibility of loaning, selling, or giving 
the Soviet people any of our surplus food 
stocks? 

THE PRESIDENT. No, we do scnd food to 
Poland, as you know, and have sent a sub- 
stantial quantity to Yugoslavia. There is no 
evidence that the Soviet Union has ever 
asked for it and my judgment is they do 
not want it. I think what Mr. Khrushchev 
addressed himself to was how they could 
improve domestic production. And there- 
fore, in answer to your question, there has 
been no discussion of it, no consideration 
of it, and I do take some satisfaction from 
our difEculties which are overproduction 
under our free agricultural economy, even 
though it is a problem which has haunted 
good men. 

[5.] Q. Mr. President, as you know, 
our rate of economic recovery has been 
very low indeed, and much less than antici- 
pated. What further actions do you believe 
the administration should take now to speed 
up the slowdown in our recovery? 

THE PRESIDENT. Well, I think it's prema- 
ture to suggest. I can't accept all the premise 
of your question. Mr. Goldberg, the Secre- 
tary of Labor, I believe this afternoon an- 
nounced some figures, which said that the 
seasonal adjusted unemployment rate of 
5.6 percent is the lowest level in 19 months 
and total employment which is 65,789,000 
set a new alltime February record. And I 
think that we should wait till — ^let the winter 
go, and let's see what happens in February 
and March, then we can make a judgment 
as to whether there is a recovery. 

You will recall that in August and Sep- 
tember we had a leveling out, and then the 
economy took off again in October, Novem- 
ber, and December. In addition, there's — 
I saw, as a matter of fact, reading the other 
day in the Wall Street Journal, that profits 
were up for companies — 22 percent, I think 
the highest in history. There's our price — 
in the last 12 months, prices only increased 



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[75] Mar. 7 



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one-half of i percent, I think, which has only 
happened in this decade once, in 1955. 

There's not an excessively high level of 
inventory buildup. I think that Mr. Heller, 
who has spoken on this matter, who I do not 
consider a natural optimist — I think he's 
been speaking what he believes. And there- 
fore I think that this economy has more 
vitality in it than some of its premature 
mourners. 

[6.] Q. Mr. President, now that you 
have seen all the available evidence in the 
Powers case, do you agree with Representa- 
tive Vinson that Mr. Powers' U-2 was shot 
down at 68,000 feet by a ground launched 
rocket? 

THE PRESIDENT. Well, I think that the re- 
port of the CIA and the comments — the 
statements which Mr. Powers made, it seems 
to me, dealt with this matter. I have no 
other information beyond what you have 
seen in those two matters. 

Q. Sir, I meant that Representative Vinson 
said the CIA believes that he was shot down 
by a rocket fired from the ground. I was 
wondering if you have any comment on that. 

THE PRESIDENT. I don't havc any comment 
beyond what the CIA has said and what 
Mr. Powers himself has said. 

[7.] Q. Mr. President, could you define 
for us what might be acceptable at Geneva 
as a safeguard against secret preparations 
for testing, and specifically whether this 
would include an increase in onsite in- 
spections ? 

THE PRESIDENT. Well, I think that the 
American negotiators at Geneva will have 
some suggestions to make in that area, and 
as this conference is going to begin in a 
week, I believe it would be preferable to 
let them make their proposals at that time. 

[8.] Q. Mr. President, you have said, 
and I think more than once, that heads of 
government should not go to the summit to 
negotiate agreements, but only to approve 
agreements negotiated at a lower level. 
Now it's being said and written that you 
are going to eat those words, and go to a 
summit without any agreement at a lower 



level. Has your position changed, sir? 

THE PRESIDENT. Well, I'm goiug to have a 
dinner for all of the people who've written 
it, and we'll see who eats what. [Laughter^ 

Let me state that I would go to the sum- 
mit if — as you've stated — if some agree- 
ments had been made which could be cli- 
maxed most effectively by a summit meeting. 
I've also stated at an earlier press conference 
if I thought a trip to the summit might avert 
a war or if we were faced with an extremely 
dangerous situation, then I think it would 
be appropriate to go to the summit without 
prior agreements. But I think to go to the 
summit without having an understanding 
of what is going to be accomplished there, 
and some meeting of minds, I think disap- 
points rather than helps the cause, and that's 
why I've held the view that I do, and that's 
why I continue to hold it, and that's why 
I am looking forward to the spring. 

[9.] Q. Mr. President, since a number 
of governments have expressed their support 
for either nuclear free zones in different 
parts of the world or for a so-called non- 
nuclear club — among those governments, 
aside from the socialist communities, there 
is Brazil, Ireland, and Sweden — what are 
your feelings, sir, about those proposals, and 
what would be the position of the United 
States Government at the Geneva disarma- 
ment conference in this respect? 

THE PRESIDENT. Well, I think there are 
two or three different points in the question. 
I think the United States — I said at the 
United Nations that I thought it would be 
desirable to come to some agreement in 
regard to the transfer of nuclear weapons 
from one country to another. Now, when 
we get into — so that's one position which the 
United States has already taken and indicates 
its support of. Your other question was in 
regard to a nuclear free zone, and that, it 
seems to me, is a matter which must be 
examined. What else will be in the zone? 
What other forces will be in the zone? 
Where will this zone be? These are mat- 
ters, I think, that could — will be discussed, 
I imagine, along with many other matters 



198 



John F. Kennedy, 7962 



Mar. 7 [75] 



affecting armaments at Geneva and in other 
conversations. 

But I think that we have to see what the 
language is, what the proposal is, what the 
effect of the situation is, before I could 
answer that question. 

In addition, Fm not convinced that this 
makes a — is a total solution. If you have a 
missile that can carry a bomb 5,000 miles, 
does it really make that much — a significant 
difference, if you don't have a bomb sta- 
tioned in this area but you have it 5,000 
miles behind, which can cover that area? 

So, therefore, I think it's a matter which 
should be discussed at the appropriate place. 

[10.] Q. Mr. President, this morning be- 
fore the Advertising Council you dwelt with 
some earnestness about the great burdens 
the United States is carrying. Are we safe 
in assuming this, is another way of saying 
that you think Some of our friends around 
the world should do more in the way of 
helping underdeveloped countries? 

THE PRESIDENT. Well, I'm hopeful they'll 
do more. I know that a good many Ameri- 
cans are concerned, as I said this morning, 
about the balance of payments, and as I have 
stated, the balance of payments problem of 
the United States could be settled overnight 
if we withdrew our security efforts around 
the world. It is the combination of the 
$3 billion that we spend keeping our defense 
forces overseas, combined with assistance we 
give in other ways, which provides for our 
dollar drain. 

Now, those countries which are building 
up their reserves, I am hopeful will be will- 
ing and some of them have, France, for 
example, which has really spent a larger 
proportion of its national income for assist- 
ancie to the former French community, 
really, than any country in the world. So, 
some countries are. But the United States 
bears a very heavy load, even in the con- 
sortiums that we go to, the United States 
loans frequendy are soft, repayable in local 
currency and the loans of others may be at 
3, 4, 5, 6 percent, so that this is a matter 
which involves us all. 



Now, as Western Europe gets stronger 
and stronger, I'm hopeful that they will play 
a larger and larger role in this struggle in 
which we are involved. Because the United 
States — the reason our gold drain has been 
in the last 10 years, is due to this matter. 
The balance of trade has been in our favor 
every year, except one in the last 10 years. 

It's been due also to investments abroad 
and some short-term capital movement. But 
if we were not making the great effort we've 
made, really since the Marshall plan, we 
would have a major convulsion because 
there would be a concentration of gold. 

Now when we are carrying this heavy 
load, I would hope that the free countries 
would work together to attempt to assign 
this balance evenly. 

We don't — we're ready to carry it, in the 
United States, to the maximum of our abil- 
ity, but we carry it in Berlin and Saigon, 
and Latin America, and Africa, and the 
Middle East, and Pakistan, and India, and 
in a good many other countries, and this 
is a matter which should concern all free 
men. 

[11.] Q. Mr. President, there has been 
a scattering of very favorable news stories 
out of South Viet-Nam, but we don't have 
any overall coverage. I wondered if you 
could tell us how the subterranean war is 
going there, because the Pentagon won't 
put out anything; and also if you'd want to 
comment on the possibility of the use of 
tactical nuclear or antipersonnel weapons 
in that area? 

THE PRESIDENT. Well, I wouldn't really — 
I don't think you could make a judgment 
of the situation. It's very much up and 
down, as you know, from day to day, and 
week to week, so it's impossible to draw 
any long-range conclusions. And on the 
second matter, it's a — I'm not familiar with 
it, and it's a matter, really, I think, of the 
Defense Department, but it has not come 
to me. In any case, it's a matter, really, for 
the Vietnamese. 

[12.] Q. Mr. President, to get back to 
Mr. Scherer's question about payments that 



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[75] Mar. 7 



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other nations make. There have been some 
suggestions in Congress, as alternatives to 
your U.N. bonds purchase plan, that part of 
the United States outlay be in matching 
funds to what other nations buy or possibly 
to make a loan to the U.N. instead of pur- 
chasing bonds. Will you comment on these 
alternatives? 

THE PRESIDENT. Well, they're both before 
the Foreign Relations Committee. I felt 
that the plan w^e sent up represented the 
best interest of the United States and the 
U.N. and v^as financially sound. So I 
would like to stay with that. Now I think 
the Foreign Relations Committee has my 
recommendations and knows my views, and 
I think they're wholly competent — a very 
responsible committee — and I think they are 
wholly competent to make a judgment. I 
do hope that we can keep the U.N. moving, 
and they do depend upon a program of the 
kind I suggested. But I think the details 
I would much prefer to leave to them because 
it is now in their hands. 

[13.] Q. Mr. President, Secretary of 
State Rusk has said that it is entirely pos- 
sible that at Geneva there will be discussions 
about Berlin and Southeast Asia. Would 
you favor such discussions at Geneva? 

THE PRESIDENT. I think that if these mat- 
ters come up and if any progress can be 
made on them, of course I favor them. This 
is not the purpose of the disarmament con- 
ference, but anything that can ease relations 
or anything that could improve the situation 
in Berlin or in Southeast Asia, of course, 
ought to be talked about. I think that's 
quite obvious and we shouldn't miss any 
opportunity. 

[14.] Q. Mr. President, could you give 
us any ideas of the areas in which we might 
explore peaceful cooperation with the Soviet 
Union in the exploration of outer space? 
What your specific thoughts might be? 

THE PRESIDENT. Well, I've Written a letter 
today to Chairman Khrushchev, putting 
forward some proposals, and I think it will 
be released as soon as he has received it. 
But I do think it should wait till that. But 



we did make some suggestions in that letter. 

[15.] Q. Mr. President this is a twofold 
question: In the event that there is an 
Algerian, independent Algerian government 
established, do you contemplate recognizing 
it? And, second, should that government 
request or apply for economic and military 
aid, would you grant it? 

THE PRESIDENT. Well, I think that this 
matter is so sensitive and coming to such a 
climax now, and being handled I think with 
skill, I believe on both sides, that I really 
think that it would be the wisest course to 
permit the situation to develop there before 
we begin to discuss what our actions would 
be at a later date. So that I think in the 
interest of the relations between the differ- 
ent parties involved that I will — but I will 
be glad to discuss that question as soon as a 
final solution has been reached. 

[16.] Q. Mr. President, the Attorney 
General, when he was visiting in Japan, 
received many inquiries about U.S. inten- 
tions towards Okinawa, and I believe you 
had a Presidential body look into this ques- 
tion. Can you say now what the situation 
is there insofar as your intentions to give 
them more self-government? 

THE PRESIDENT. As a matter of fact, the 
Attorney General said that it was really the 
matter which came up more in his conver- 
sations than any other matter, and is a 
matter of great concern to the Japanese. 
There was a very responsible committee 
went out and made some recommendations 
to us, which have been considered by the 
Joint Chiefs and others, and we are going to 
have some suggestions to make to the 
Japanese Government on this matter, 
though — in the next days — though quite 
obviously this is a very vital base. And from 
that base security is provided for a whole 
variety of countries in Asia. And so that 
we have to balance off the defense needs and 
also the legitimate interests of the people of 
Okinawa and of Japan. We are going to 
attempt to do the best we can, given those 
limitations, and make some suggestions 
very shordy. 



200 



John F. Kennedy, 1962 



Mar. 7 [75] 



[17.] Q. Mr. President, have you any 
steps in mind to take, any moves to make, 
if the steel companies and unions do not 
respond to your view? 

THE PRESIDENT. Fd put that v^ith the — 
France, Algeria, in the sense that I think v^e 
ought to w^ait till w^e see vv^hat happens in 
the negotiations. These companies are free 
and the unions are free. All w^e can try to 
do is to indicate to them the public interest 
which is there. After all, the public interest 
is the sum of the private interests, or perhaps 
it's even sometimes a litde more. In fact, 
it is a little more. But the Federal Govern- 
ment has no power in these negotiations, 
unless there was a strike which threatened 
the national health and safety, and that 
would be sometime late in the summer. So 
all we can do is attempt to persuade the 
parties to go around the bargaining table and 
point out to them how vitally the public 
interest is involved. 

In the first place, this is a basic industry. 
We are in a period of recovery which we 
want to maintain. This is going to be re- 
garded symbolically as a test of our ability 
to manage our economy in a competitive 
world. It will be looked on in Europe. I 
think the public interest is so involved, I 
think there's enough community of interest 
between the company and the union after 
their '59 experience that I am hopeful they 
can reach an accord, and I'm hopeful when 
they go back in March that they will do it. 
But we are limited by the Constitution and 
statutes and proprieties to the areas which 
I've discussed. But this — I hope they work 
it out, because it's in their interest as well as 
the public. 

[18.] Q. Mr. President, the Congress has 
been in session for about 2 months now, and 
has not accomplished very much. Would 
you care to comment on how you feel about 
this present pace? 

THE PRESIDENT. Well, I must say that al- 
ways in the first part of March we read 
about — that the Congress hasn't done much, 
and in fact last year at this time I think that 
not a single bill had been passed of any 



proportion — at the end of the year almost 
30 bills. Now we have taken action in four 
or five areas. The higher education has 
passed both the House and Senate, and the 
conference hasn't met. I think the confer- 
ence has come to a conclusion on the man- 
power retraining, the pension and welfare 
disclosures. The tax bill is about to come to 
the floor. I think that legislation is going 
to come really pouring out of these commit- 
tees in the next month or 2 months. So I 
don't have any criticism at all of the pace of 
the Congress. The test would be whether 
the legislation which involves not only the 
well-being of a good many Americans, such 
as medical care for the aged, but also those 
pieces of legislation which will help us fight 
the next economic turn down — whether 
those pieces of legislation will be passed. 
And I'm hopeful that the Congress will con- 
sider those very carefully or their alternates. 
But I must say I think you cannot — I think 
the Congress is moving ahead. I think in 
some ways it's further ahead than last year, 
and I think we're going to get a good deal 
of legislation from the Congress this year. 

[19.] Q. Mr. President, I know you 
don't want to prejudice your position in ad- 
vance of Geneva, but I want to ask you this: 
Prospects for disarmament and/or a nuclear 
test ban treaty are indeed pretty dim. What 
happens if those prospects don't brighten? 
Do we continue testing? Do the Russians 
continue testing, escalating the nuclear arms 
race, ad infinitum? 

THE PRESIDENT. I supposc that is Certainly 
the danger, and the reason why we are at- 
tempting to get an agreement on the cessa- 
tion of nuclear tests. The reason why I said 
I thought it would be perfectly proper for 
us to discuss Berlin and Germany or South 
Asia is because these matters directly influ- 
ence the progress of armaments. Without 
the Korean War — after all, our budget went 
from $14 billion up to what it is now, and 
we ourselves have had to spend a good deal 
more because of Berlin and South Asia, so 
that I do think there is a direct relation be- 
tween these political questions and arma- 



715-405 O— 64- 



-17 



201 



[75] Mar. 7 



Public Papers of the Presidents 



ments and disarmament. But if we fail to 
get an agreement on testing, then of course, 
as I've said, we test. And I presume that 
others will test. And I regard that as a very 
risky, in the long run, procedure for the 
future of the human race. 

On the other hand, if we do not test and 
others test, that has a risk. And I made 
the determination that that would be the 
greater risk. Now we're going to try here 
before the end of April, and we'll also con- 
tinue trying after the tests begin, if we're 
unable to get agreement before then. Be- 
cause I'd much prefer a test agreement than 
to continue this kind of competition. 

[20.] Q. Mr. President, strong forces in 
Congress are talking about legislative action 
to direct you to spend procurement funds for 
the B-70. I wondered if you could give us 
your thinking on the B-70 substantive issue, 
and on the power of Congress to direct you 
to spend money in such a way. 

THE PRESIDENT. Well, ou the substantive 
issue, as you know, we put in funds to 
develop three different prototypes of the 
B-70. And the — it was proposed by the 
Air Force that they would have 140 B-70's 
which would cost $10 billion, which would 
be ready by 1970 or '71, and that is a large 
sum of money, and we have a good many 
manned aircraft. We have over 640 B-52's 
as well as an extensive missile armory, which 
is coming in: Polaris we have now. Minute- 
man we will have. Titan we have now, Adas 
we have now. So the question really is 
whether we should put that large sum of 
money into manned bombers which will be 
available in '70 and '71. That's the first 
point. 

The second point is that, according to 
those who have studied it in the Defense 
Department, we really can't spend the 
money now. A good many of the equip 
ment — much of the equipment which would 
go into a B-70, some of it, first, hasn't been 
developed yet, and we really won't have 
our major flights in the B-70 till '63 and '64. 
Now if it's decided in '63 and '64 that we 



have a strategic need for the B-70, we should 
then go ahead with it. But to get the money 
today, when we haven't developed the pro- 
totype, seems to me to be — or at least it 
seemed to Secretary McNamara, who has 
given it a good deal of study, and to General 
Lemnitzer, and, I think, to Admiral An- 
derson and the other members of the Joint 
Chiefs — ^Decker — with the exception of the 
Air Force, it does seem to me to be a — not 
the most judicious action. 

Now, the Congress has a great authority 
and responsibility. They know a good deal 
about it. So I think that this is a matter 
which I hope we can talk about — the Ap- 
propriations Committee, the Armed Services 
Committee of both the House and the Sen- 
ate, and we can get a better judgment as to 
what the language will be at the end. But 
I hope we take a cold look at when this 
force will be ready, what position it's in 
today, whether we are prepared to go ahead 
with production, and what will be the use 
of this particular force in 1970 or '71 with 
all of the progress that's being made in 
missiles, ground-to-air missiles against 
planes, and in view of the fact that we are 
going to spend over a billion dollars equij>- 
ping our present force of B-52's with Sky- 
bolts, which will extend their life and their 
effectiveness. But in the final analysis, this 
is a matter on which I have relied very 
heavily on Secretary McNamara, in whom 
I have the greatest confidence. 

[21.] Q. Mr. President, the pictures of 
the Attorney General's overseas trip showed 
him saying that he was there as the repre- 
sentative of the United States Government. 
Now, outside of speaking to students, will 
you tell us what his mission really was and 
what he achieved.? 

THE PRESIDENT. Well, I, his mission was 
to — as I said at the previous press confer- 
ence, his particular mission and interest was 
to try to talk to students and to intellectuals 
and others who are among the future leaders 
of these countries and whom we have not 
always enjoyed, for reasons which have not 



202 



]ohn F. Kennedy, 7962 



Mar. 7 [75] 



always been precise to us, the happiest 
relations. So I think that that stimulated 
his visit. He is an official of the United 
States Government, and I think that those 
who are in official positions were anxious to 
talk with him and discuss their problems. 
The fact of the matter is that five other 
Cabinet officers went to Japan last fall. I 
don't know whether you — and a good many 
Cabinet officers, Mr. Goldberg, Mr. Hodges, 
have been to Africa. I think that people 
who hold positions of importance in the 
American Government ought to travel, and 
they learn. I call on them for advice as 
members of the Cabinet, or the Security 
Council, and, in addition, they tell these 
people that we have a very vital, moving 
country here. And I think his trip was 
very worthwhile. 

[22.] Q. Mr. President, against the back- 
ground of the Brazilian seizure of an 
American-owned telephone company. Con- 
gressman Adair, and I believe Senator Long, 
and others, have introduced legislation which 
would, in effect, cut oS assistance from the 
United States to nations where American 
assets have been expropriated without com- 
pensation. Would you comment on the 
desirability of that, and also on the impact 
of that seizure on America's — on the Amer- 
ican public's support of the Alliance for 
Progress program? 

THE PRESIDENT. Well, uow, as you know, 
the telephone company was seized by the 
governor of a province who has not always 
been identified particularly as a friend of the 
United States and we have been attempting 
to work out an equitable solution with the 
Brazilian Government. Nobody has ever 
questioned the right of any government to 
seize property, providing the compensation 
is fair. The United States is involved with 
the Brazilian Government in attempting to 
adjust this matter. I can think of nothing 
more unwise than to attempt to pass a reso- 
lution at this time which puts us in a posi- 



tion not of disagreement with a governor of 
a state, who is not particularly our friend, 
but, instead, really, with the whole Brazilian 
nation, which is vital and which is a key and 
with which we must have the closest rela- 
tions. So that we want this matter settled. 
It is in our interest and in the interest of 
Brazil. 

Private capital is necessary in Latin 
America. There isn't enough public capital 
to do the job. And, therefore, we are work- 
ing on it and the Brazilian Government has 
been responsive in attempting to work out 
a satisfactory solution. President Goulart is 
coming here in April, and we will be dis- 
cussing many matters which involve our re- 
lations. And I must say that if you look at 
the map and realize the vitality of Brazil, 
I think that we ought to keep a sense of 
proportion. We don't want to make the 
work of those who dislike us easy by reacting 
to things which happen in a way which 
strengthens them and weakens the influence 
of the United States. 

[23.] Q. Mr. President, you have sug- 
gested that the Indiana Dunes, a natural area 
comparable to that on Cape Cod between 
Nauset and North Truro, be reserved to the 
Nation as a national park. It is now in 
danger of being destroyed by the erection 
of a steel mill and an artificial harbor. Do 
you think there is any chance of Federal 
action to save this area for the Nation? 

THE PRESIDENT. Well, we made our recom- 
mendation and we'll follow and see what 
the Congress does with it. It's highly con- 
troversial. But we expressed what we 
thought was in the best interests, with the 
large number of people who live in that 
immediate area. And we'll continue to 
watch it through the Congress. 

note: President Kennedy's twenty-sixth news con- 
ference was held in the State Department Audi- 
torium at 3:30 o'clock on Wednesday afternoon, 
March 7, 1962. 



203 



[76] Mar. 7 



Public Papers of the Presidents 



76 Special Messages to the Congress on the Trade Agreements 
Concluded at the Geneva Tariff Conference. March 7, 1962 

To the Congress of the United States: 

I transmit herewith to the Congress copies 
of trade agreements with the European 
Economic Community, the United King- 
dom, Norway, and Sweden, including 
schedules which my duly appointed repre- 
sentatives signed on behalf of the United 
States on March 5 and March 7, 1962. 

Section 4(a) of the Trade Agreements 
Extension Act of 195 1 requires that I report 
to the Congress on those instances in which 
I have departed from the "peril point" find- 
ings of the Tariff Commission. Annex A, 
attached to this message, lists and gives the 
reasons for the instances in which I decided, 
in the interest of concluding trade agree- 
ments advantageous to the United States 
during the Geneva Tariff Conference, to 
accord tariff concessions going below the 
levels found by the Tariff Commission. 

At this time, when the Congress is con- 
sidering a major new trade law, I wish to 
provide a detailed account of the circum- 
stances in which I instructed our negotiators 
to make such concessions. 

Most of these concessions were negotiated 
with the European Economic Community. 
When the so-called Dillon round, or, the 
phase for new reciprocal concessions, of the 
Geneva Conference opened on May 29, 1961, 
the EEC offered concessions following along 
the lines of its decision of a year earlier to 
reduce industrial tariffs across the board by 
20 percent, a decision that was conditional 
on reciprocal concessions from other nations, 
and especially the United States. The EEC 
offers involved concessions affecting Ameri- 
can exports to the EEC countries amounting, 
on the basis of 1958 figures, to $846 million. 
Of this total, $422 million represented ex- 
ports on which the United States had asked 
for concessions, $337 million being offered 
in the name of the United States as the prin- 
cipal supplier, and the remaining $85 million 
in the name of third countries from which 



the United States would also receive sub- 
stantial benefits. 

It was the American negotiating objective 
to take advantage of the initial EEC offers 
and also to seek additional concessions. We 
were being offered tariff reductions having 
large potential value to our export trade. 
Furthermore, the emerging European Com- 
munity was proposing to take a first long 
step toward making its trade policy an out- 
ward looking one. Our interest was to 
assure that we obtain these new opportuni- 
ties for our exporters and, in the process, that 
we help to mold the EEC's external trade 
policy along liberal lines. 

Our negotiators, however, were grievously 
short of bargaining power. The instructions 
under which they were authorized to pro- 
ceed fell well short of matching even the 
initial offers of the EEC. The EEC offer to 
reduce industrial common tariff rates by 20 
percent directly affected United States trade 
of $846 million (1958) and was responsive 
to about 60 percent of our requests to the 
EEC for tariff concessions. In contrast, our 
offers consisted of: 

(a) $41 million of offers to bind rates of 
duty at present levels; 

(b) $90 million of offers of duty reduc- 
tions requested by the EEC (about 20 per- 
cent of total EEC requests); and 

(c) $396 million of offers involving duty 
reductions not requested by the EEC. 

The manner in which the United States 
came to this negotiating position is impor- 
tant for an understanding of the trade agree- 
ments just concluded and for its bearing 
upon the new trade legislation that I have 
recommended to the Congress. 

Prior to the Geneva Conference, the EEC 
had filed requests with the United States for 
concessions accounting for a trade volume in 
1958 of $451 million. Our inter-agency 
screening process eliminated from the origi- 
nal "Public List" a number of articles, con- 



204 



John F. Kennedy, 7962 



Mar. 7 [76] 



cessions on which would have been respon- 
sive to requests from the EEC. The trade 
volume involved was $128 million. These 
articles were those on which tariff conces- 
sions, in the judgment of the inter-agency 
committee, might give rise to serious com- 
petitive problems for American industries. 

Under Section 3(a) of the Trade Agree- 
ments Act, the Tariff Commission was then 
required to study further the list of poten- 
tial concessions approved by the inter-agency 
committee and to establish "peril points" for 
each article included. 

The Commission found that of the con- 
cessions asked by the EEC, articles having a 
trade volume of $220 million could not be 
made the subjects of downward tariff adjust- 
ments without causing or threatening to 
cause serious injury to the domestic indus- 
tries concerned. Coverage of the EEC re- 
quest list was thus reduced to $103 million, 
less than one-fourth of the list. The Com- 
mission made the same finding on articles 
having a trade volume of $113 million 
among items not on the EEC request list but 
which the inter-agency committee had se- 
lected in order to strengthen the United 
States negotiating position. 

I believe that we must recognize that un- 
der the law the Tariff Commission was 
required to make hasty predictions as to 
future market conditions for thousands of 
individual articles. These predictions were 
necessarily superficial. Even if there had 
been available, and there was not, a full 
range of data for production, trade and 
prices on all these articles, the Commission's 
task was a highly speculative one. This 
was particularly true with regard to items 
exported from the Common Market coun- 
tries. These countries are going through 
revolutionary changes in their trade patterns, 
attendant upon the development of a new 
internal market of unprecedented propor- 
tions. In some cases, products which were 
previously available for export to other 
countries will find their future markets 
within the area. In other cases, products 



which had not previously been exported will 
appear as new export specialties. 

In this situation, given the tenor of the 
provisions under which it operated, the Com- 
mission understandably resolved any doubts 
by establishing peril points on the products 
concerned at the existing tariff level. Peril 
points were found at the existing rate of 
duty on a range of articles, for a large num- 
ber of which the maintenance of existing 
tariffs clearly was unimportant. In many 
instances tariff reductions of even a few 
percentage points were precluded. In others 
peril points were found at existing duty 
levels for specialty commodities not competi- 
tive with domestic production. Similarly, 
peril points at the existing duty level were 
set for basket categories of many items even 
though the situation as between items in the 
category might differ markedly. Tariff re- 
ductions were precluded in cases where 
imports represented only a minor fraction 
of domestic consumption. The result was to 
give our Delegation at Geneva a very lim- 
ited bargaining package and minimum room 
for negotiating maneuver. 

It was with many misgivings, therefore, 
that I had authorized our Delegation in 
Geneva to make a counter-offer to the EEC 
along the lines of the outstanding instruc- 
tion. This original instruction scrupulously 
avoided any offers of reductions below peril 
point findings of the Tariff Commission. 

The response of the EEC was to announce 
a withdrawal and reconsideration of its offer. 
The six EEC nations indicated they were 
not prepared to conclude an agreement on 
the basis we had proposed and that they 
would have to withdraw the concessions 
that had been offered because of the gross 
disparity between our offers and theirs. It 
was clear that we were faced with a poten- 
tially irretrievable situation. If the EEC 
had decided to abandon its across-the-board 
proposal, it would have been necessary to 
obtain unanimity among the six member 
nations to maintain on an item-by-item basis 
some of the elements of the original offer. 



205 



[y6] Mar. 7 



Public Papers of the Presidents 



This was not possible. To adhere to our 
original position would have been to reject 
the EEC proposal. 

The loss to our export trade from such a 
sequence of events would have been substan- 
tial, for we stood to gain most from the EEC 
offer. Far more important would have been 
the long term consequences of our action. 
The EEC necessarily looked to the United 
States, the world's greatest trading nation, 
for a sufficient measure of reciprocity to 
enable it to carry through its provisional 
decision to reduce the common external 
tariff of the Community. If that decision 
had been withdrawn, the road would have 
been opened wide to the formation of a 
number of trading blocs in the free world 
set off from one another by high barriers to 
trade. 

We could not permit this to happen. 

Accordingly, after months of negotiation 
and when no other recourse was available 
to save the situation, I authorized our Gen- 
eva Delegation to offer new concessions on 
a number of items at rates below peril point 
findings. In selecting these articles, two 
criteria were used: their potential value in 
obtaining or maintaining concessions from 
our negotiating partners, principally the 
EEC, and the extent of the competitive 
adjustment likely to be placed on American 
industry by tariff concessions. 

In taking this step, we avoided the col- 
lapse of the Geneva talks and we held open 
the way to a future of economic cooperation, 
not separation, between the two common 
markets, the one in Western Europe, the 
other the United States. 

Our action salvaged and revived the Gen- 
eva Conference. It did not involve serious 
competitive risks for American industry. 
We granted concessions to the EEC at rates 
below peril points on articles having a 1958 
trade value of $76 million. Apart from such 
concessions to the EEC, we also made con- 
cessions of this character to the United King- 
dom on items having a trade volume of $7 
million. (Co-offers of concessions on four 
items, contingent upon confirmation of the 



same concessions to the EEC, were made to 
Norway and/or Sweden. These were in 
the amount of $437 thousand). 

The total of our concessions, indeed, 
would not in itself have been sufficient to 
recover our position. The EEC, however, 
was acutely aware of the limitations under 
which the United States was negotiating. 
Within the Community, the forces favoring 
a liberal trading policy were gready strength- 
ened by the evidence that we were serious 
about bargaining down trade barriers. 
Once we had made our move, this phase of 
the negotiations proceeded expeditiously to 
a conclusion. That conclusion was highly 
advantageous to the United States. 

— The EEC maintained most of its across- 
the-board offers on industrial products. The 
only significant exception was in the field 
of chemicals, an area where, because the 
offers by the United States represented only 
I24 million of trade, the EEC cut back its 
offers to the United States from $172 mil- 
lion to $93 million; 

— ^The EEC added to its initial offers 
concessions involving trade of $100 million 
in the previously excepted agricultural chap- 
ters and another $33 million of formerly 
reserved automobile parts, and on miscel- 
laneous commodities accounting for another 
$5 million of trade; 

— Finally, the successful conclusion of the 
US-EEC negotiations opened the way for 
negotiations between third countries and the 
EEC, which had been marking time await- 
ing their outcome. From the resulting nego- 
tiations of others with the EEC, U.S. exports 
stand to receive substantial additional bene- 
fits because of our right to such concessions. 

The United States thus can take satisfac- 
tion from the outcome of the Geneva nego- 
tiations. We advanced our trading interests 
and we maintained progress toward eco- 
nomic cooperation within the Western 
world. But these accomplishments were 
made, in large part, in spite of hampering 
features of the trade agreements law. And 
we had the sufferance of our major trading 
partners. 



206 



]ohn F. Kennedy, 7962 



Mar. 7 [76] 



We cannot be expected to bargain effec- 
tively in the future under the limitations of 
the present law. If we are to lead, as we 
must, we must have the means for the exer- 
cise of leadership. The Trade Expansion 
Act which I have recommended to the Con- 
gress will provide these means. 

In an accompanying message, I am re- 
porting to the Congress under Section 4(a) 
of the Trade Agreements Extension Act of 
1 95 1 on the disposition of the cases in which 
the Tariff Commission in i960 found peril 
points higher than the existing rate of duty. 

John F. Kennedy 

To the Congress of the United States: 

This report, supplementing my report on 
reductions made at the 1960/62 Tariff Con- 
ference in excess of peril-point findings, is 
further in compliance with Section 4(a) of 
the Trade Agreements Extension Act of 

1951- ^ 

During the usual peril-point investigation 
of the items included in the Public Notice 
issued in connection with the negotiations, 
the Tariff Commission found that the peril- 
point was higher than the present rate on 
nine widely varied products. The Trade 
Agreements Extension Act of 1958 provides 
that in such instances the Tariff Commission 
must institute an immediate escape-clause 
investigation with respect to the articles 
involved. Accordingly, the Commission 
undertook the required investigations with 
the following results: 

(i) On baseball and softball gloves, ce- 
ramic mosaic tile, and sheet glass, the Com- 
mission recommended to me that existing 
duties be increased. 

(2) On tennis rackets and creeping red 
fescue seed, the Commission terminated the 
investigations without recommendation. 

(3) On ultramarine blue, rolled glass, 
plastic raincoats and cellulose filaments, the 



Commission found that increases in the 
duties were not necessary. 

The law provides that, if the President 
does not negotiate the increase of duty indi- 
cated by the Commission's peril-point find- 
ings, he shall report his reasons therefore 
to the Congress. 

This is to advise that no such increases in 
duty were negotiated at the 1960/62 con- 
ference. The recitation of the Tariff Com- 
mission's further investigation of these nine 
cases, as above given, suggests why the nego- 
tiation of higher rates was not undertaken. 
In six of the nine cases the Tariff Commis- 
sion, upon a fuller study of the facts than 
had been possible during its peril-point in- 
vestigation, did not recommend an increase 
in duty. In the other three, I was not satis- 
fied that all of the applicable facts had been 
fully canvassed in the Commission's subse- 
quent investigations; consideration of the 
appropriate rate of duty was consequently 
still pending as of the time our negotiations 
at the 1960/61 conference were being com- 
pleted. I now have supplementary reports 
of the Tariff Commission before me. My 
decision on the three cases is pending. 

I append a list defining more precisely 
the nine commodities mentioned above. 

John F. Kennedy 

note: The "Trade Agreements With the European 
Economic Community, the United Kingdom, Nor- 
way, and Sweden, including schedules signed on 
behalf of the United States on March 5 and March 7, 
1962," and the report on "Products on Which Tariff 
Regulations Were Made Below Peril Point Levels 
1960-61 GATT Tariff Conference" are printed in 
House Document 358 (87th Cong., 2d sess.). The 
supplemental "Report in Compliance With Section 
4(a) of the Trade Agreements Extension Act of 
1951" is printed in House Document 357 (87th 
Cong., 2d sess.). 

On the same day the White House, in announc- 
ing the conclusion of the conference, released a 
summary of the tariff negotiations. 



207 



[77] Mar. lo 



Public Papers of the Presidents 



77 Address at Miami Beach at a Fundraising Dinner in 
Honor of Senator Smathers. March lo, 1962 



Senator Smathers, Mr, Chairman, Governor 
Bryant, Senator Holland, members of the 
Florida delegation. Secretary Ribicoff, Sena- 
tor Jennings Randolph, ladies and gentle- 
men: 

I had never heard until tonight Senator 
Holland's nominating speech for Senator 
Smathers, but it is one of the most moving 
speeches that I have ever heard. The ques- 
tion is, George, w^ere you really serious out 
there in Los Angeles? 

I actually came dovi^n here tonight to pay 
a debt of obligation to an old friend and 
faithful adviser. He and I came to the 8oth 
Congress together, and have been associated 
for many years, and I regard him as one of 
my most valuable counselors in moments of 
great personal and public difficulty. 

In 1952, v^hen I was thinking about run- 
ning for the United States Senate, I went to 
the then Senator Smathers, and said, 
"George, what do you think?" He said, 
"Don't do it. Can't win. Bad year." 

In 1956 I was at the Democratic Conven- 
tion, and I said — I didn't know whether I 
would run for Vice President or not, so I 
said, "George, what do you think? This 
is it. They need a young man." "It's your 
chance." So I ran — and lost. 

And in i960 I was wondering whether I 
ought to run in the West Virginia primary. 
"Don't do it. That State you can't possibly 
carry." 

And actually, the only time I really got 
nervous about the whole matter at Los 
Angeles, was just before the balloting, and 
George came up and he said, "I think it 
looks pretty good for you." 

It will encourage you to know that every 
Tuesday morning we have breakfast to- 
gether and he advises with me — Cuba, 
anything else, Laos, Berlin — anything — 
George comes right out there and gives 
his views and I listen very carefully. 

It is a great honor to be here. And I think 



that you are fortunate, I had heard in Wash- 
ington that Senator Smathers had a tough 
fight, I wanted to come down here — I have 
been asking all day who he's running 
against — nobody knows his name — ^$300,000 
has been raised for this fight, but we're all 
glad to pitch in, in a hard battle. George, 
it's a bad year! 

All of you, however, have a downpayment 
on his candidacy, and I know that you are 
going to support him wholeheartedly. I 
think the best test of any man is the opinian 
of those who serve with him. He is a mem- 
ber of what has been called the most exclu- 
sive club in the world — it is the only club 
that it is safe to be a member of in Washing- 
ton today. And in that club he is one of the 
leaders of the majority party. He was Chair- 
man of the Senate Campaign Committee. 
When I was running for the Presidency, he 
was the chairman of our campaign in the 
South. When I stood up to be married, he 
was my usher. And therefore I am de- 
lighted to come here to join with a friend — 
which is the most important thing — and also 
a distinguished Member of the United States 
Senate. 

I think George Smathers — in fact I know 
this — in the 1950's when Latin America was 
a matter of, I think, comparative indiffer- 
ence, when our eyes were concentrated on 
problems all over the world, to the best of my 
recollection — and I think Senator Holland 
pointed this out very wisely — Senator 
Smathers was the only Member of the United 
States Senate who time and time again indi- 
cated to the Members of the Senate, and to 
the people of the United States, that this is 
our backyard. 

From 1945 to i960 the United States gave 
as much aid to Yugoslavia as it did to all 
of Latin America, and it is a source of satis- 
faction to me, with all of the problems that 
we now face in Latin America, and all of the 
challenges, that this country has a program 



208 



John F. Kennedy, 7962 



Mar. 10 [77] 



in the Alliance for Progress which I believe 
can successfully counter the Communist on- 
slaught in this hemisphere. 

And your Senator, Senator Smathers — 
reaching as this State does into the South — 
I believe v^as the first Member of the Senate, 
really, in the fifties who pointed out how 
ignored we had been and how uncertain we 
had been in our policy toward this area. 
I am confident that Senator Smathers will 
be reelected. 

This is a great State. I am not sure that 
the people of Florida realize yet what is 
happening to this State and what will hap- 
pen in the next 10 years. The space age 
which we all take such satisfaction in, in the 
person of Colonel Glenn, is going to make 
the most profound difference to this State. 

In the next year we will have five times as 
many people working in the Canaveral area 
as we do today. We will spend four times — 
in the space program — as much as we do 
today. But that is only the beginning. As 
Governor Bryant said, with that emphasis 
on space will come the scientists and engi- 
neers, will come the improvement in your 
universities and colleges, will come the em- 
phasis on technical accomplishments, which 
can make Florida one of the most vigorous 
and vital areas of the United States. 

California — we have seen that in that 
State, with the great emphasis which its 
universities and colleges have made upon 
technical accomplishment. As you know, 
Berkeley, the University of California, has 
nearly three times as many Nobel prize 
winners in its campus alone as the whole 
Soviet Union, and what has happened there 
with their emphasis on technology, is going 
to happen in this State — if the people of 
Florida recognize the opportunity that is 
before them. 

And I believe that your distinguished 
Governor recognizes that, and Senator Hol- 
land, a Member of the Space Committee, and 
Senator Smathers and the members of your 
congressional delegation, and the people of 
this State, who will put emphasis on improv- 
ing your colleges and universities and 



schools, can make Florida one of the most 
vital, vigorous sections not only of this 
country but of the world. 

I believe the New Frontier can be cap- 
tured here in Florida as almost no other 
State of the Union, and I am confident that 
the people of this State will recognize that 
space is not merely a brave individual. 
Colonel Glenn, but means all of the changes 
of technology and science and engineering, 
which can move this State up to being a 
vigorous and vital place. 

In one of the most amazing prophecies in 
history a hundred years ago, Jules Verne 
prophesied that there would be a competi- 
tion between Florida and Texas as to which 
State would be the source of vitality in the 
space age. He thought that Florida might 
fail because there was no city large enough, 
and he wondered whether Florida was stable 
enough, linked to the United States, to stand 
the blast which would come when we finally 
put a man in space. One hundred years 
ago! 

Well, I prophesy in the next 10 years 
that this State is going to have the greatest 
period of development of any State in the 
United States — and you, the people of 
Florida, must be part of it. 

And I think your Governor, and Senator 
Smathers, and Senator Holland, and the 
members of your delegation, recognize it. 
Those who say why should we go to the 
moon, it's not the moon that we are inter- 
ested in; it's the ability of the United States 
as the leader of the free world to be second 
to none in a vital sea and ocean — which I 
believe space to be. And what it means 
here and around the world I believe can be 
the most important part of our rise in the 
1960's. 

In looking back over the last year, I take 
some satisfaction in some events, and I take 
disappointment in others. We have, I be- 
lieve, got a policy towards Latin America — 
though we must implement it. We have 
attempted to rebuild the economy of the 
United States, and it is a fact that employ- 
ment and profits and the whole source of 



209 



[77] Mar. lo 



Public Papers of the Presidents 



the economy has moved ahead. And we are 
attempting in a trade policy to revitalize 
our economy and tie us closer together in 
Europe. 

But I want to emphasize the jobs that are 
still undone. Woodrow Wilson in 19 13 
said "What good is the success of a party 
unless it serves a great national purpose?" 
And I want to emphasize how essential are 
our great national purposes in the next 
decade. 

The United States — and this becomes 
more and more obvious every day — is the 
source of strength of the entire free world. 
We are criticized and denounced regularly, 
day by day, in every section of the free world. 
But the fact of the matter is that in this 
hemisphere, in Western Europe and the 
defense of Western Europe, in Berlin, in 
Africa, in Asia, in the far reaches of South 
Korea, all the way stretching in a great 
half-circle from Berlin, the United States is 
the sentinel at the gate. 

I said a year ago that I do not think that 
any of us should regret this role — and I do 
not. It is burdensome. I am sure that you 
get fatigued from it. I am sure you regard 
it as a heavy burden on you. But the fact 
of the matter is that if we fail the whole cause 
of freedom fails. And I believe as a citizen 
of the United States that we should be pre- 
pared to carry that burden, regardless of 
whether others are willing to do so or 
not. 

And I know that you get tired of assist- 
ing countries far away. The fact of the 
matter is, I am sure there's no one who gets 
more tired of it than your Senior Senator, 
Senator Holland. But it is a fact last sum- 
mer, when this program was under attack. 
Senator Holland and a few other Senators — 
as a matter of fact, in both parties — made it 
possible for us to carry on a program which 
makes the United States contribute to the 
defense of NATO — Greece, Turkey, Iran, 
Pakistan, India, Thailand, Laos, Vietnam, 
the Republic of China, the Philippines, 



South Korea, as well as Latin America and 
Africa. That is a role which I believe, when 
the history of this age is written and all of us 
who bear positions of responsibility have 
passed from the scene, I believe that that is 
a record — however tired and burdensome it 
may now seem — that is the record for which 
we will be remembered. 

So I come to this city and this State which 
has a most promising future, as a part of a 
country which has a most promising future 
as a part of the free world which I believe 
has a most promising future. The fact of 
the matter is that in the last 12 months we 
have seen more clearly than ever before the 
contrast between our system and that of 
those who make themselves our adversaries. 

The wall in Berlin, to lock people in, I 
believe is the obvious manifestation, which 
can be demonstrated all over the world, of 
the superiority of our system. And the 
question now is: Are we willing to stand the 
cost? Are we willing to carry the burdens 
through the next 10 or 15 or 20 years? 
I believe we are. 

And I come to this southern part of the 
United States to speak on behalf of your 
Junior Senator, Senator Smathers, who I am 
confident will come back. And Dante 
Fascell, the Congressman from this city. 
Dante once said that the hottest places in 
hell are reserved for those who in a period 
of moral crisis maintain their neutrality. 
He does not, and that is why I am confident 
that he will be re-elected, too, to the United 
States Congress. 

The history of the United States was not 
written at Jamestown, or in Massachusetts. 
It began here in your State — St. Augustine, 
400 years old. And I believe that here in 
the oldest part of the United States we have 
a potential of being the most vital and 
vigorous. 

So I join you tonight in a salute to your 
Junior Senator — a salute to your State — and 
also a salute to our country. 

Thank you. 



210 



John F. Kennedy, 7962 



Mar. 12 [79] 



note: The President spoke at the Fontainebleau 
Hotel, Miami Beach, Fla. In his opening words he 
referred to Senator George A. Smathers, Representa- 
tive Dante B. Fascell, who served as chairman of 
the dinner, Governor Farris Bryant, and Senator 



Spessard L. Holland, all of Florida; Abraham 
Ribicoff, Secretary of Health, Education, and Wel- 
fare; and Senator Jennings Randolph of West 
Virginia. 



78 Message to the People of Greece on the 15th Anniversary 
of the Truman Doctrine. March 12, 1962 



WE OBSERVE today the fifteenth anni- 
versary of President Truman's historic an- 
nouncement of the purpose of the United 
States to help the Greek people defend their 
freedom. This announcement, with the 
support of the Congress and the American 
people, was translated into action. And 
that action followed on a great tradition 
of ideals common to Greeks and Americans. 

We Americans do not forget that it was 
because of the threat to Greece that the 
particularly close relationship marking our 
present affairs began. The danger to Greece 
was overcome, primarily because of the na- 
tional determination of the Greek people to 
restore their freedom and democracy given 
them by their ancient heritage. 

Today, we are joined together in an effort 
to strengthen the cultural and spiritual ties 



we share and for our part we pledge our 
loyalty to our faithful and gallant Greek 
friends. Together we have accomplished 
much and, united in purpose, there is litde 
we cannot do in the future. We assure the 
Greek people of our continued support 
against the dangers which confront us both, 
as well as our goods and deeds to help in the 
quest for progress. We are ever mindful of 
the vital role which Greece has played and 
continues to perform in the NATO defen- 
sive shield. Believing that the historical 
bonds of friendship which have united our 
nations have been strengthened by President 
Truman's decisive action, we are confident 
that these ties will grow ever stronger. 

John F. Kennedy 



79 Message to the People of Turkey on the 15th Anniversary 
of the Truman Doctrine. March 12, 1962 



FIFTEEN years ago today. President Tru- 
man, in a historic declaration, announced 
the purpose of the United States to help the 
Turkish people defend their freedom and 
independence. With the support of the 
Congress and the American people, that 
purpose was accomplished, and since then 
our two nations have joined in a common 
effort to preserve the right of free peoples 
to work out their own destinies in their 
own way. 

We are ever mindful of the vital role 
which the Turkish nation has played and 
continues to play in the NATO defensive 
shield. We in America are proud to be 



allied with the Turkish people in a deter- 
mined effort to bring peace and prosperity 
to all mankind. Each of our nations can 
take much pride in the success we have 
achieved in this great undertaking since 
1947. Of great interest to the American 
people is the progress which Turkey has 
made in developing its economy. The his- 
torical bonds of friendship which unite our 
nations have been strengthened by President 
Truman's historic decision, and I am con- 
fident that, in the future, these ties will grow 
ever stronger. 

John F. Kennedy 



211 



[8o] Mar. 12 



Public Papers of the Presidents 



80 Letter to the President of the Senate and to the Speaker 
of the House on the Unemployment Compensation System. 
March 12, 1962 

When enacted, the legislation will exert a 
stabilizing ejffect upon our economy, helping 
to maintain consumer purchasing power and 
cushioning any economic reverses. It will 
make unnecessary the temporary stop-gap 
legislation sought each time a crisis develops, 
and modernize the system to better meet the 
needs of the worker, the community and the 
nation. Today, weekly benefits are often 
too low in relation to lost wages to enable 
the worker to meet his basic and non-de- 
ferrable expenses. Incentives to the various 
States to establish basic minimum payments 
equal, in most cases, to one-half the wages 
lost, would be provided. An additional 
3,000,000 workers not now covered would 
be brought within the system. The burden 
of excessively high unemployment compen- 
sation taxes that exist in several States would 
be removed. The financial soundness of the 
system would be strengthened by increasing 
the amount of wages subject to taxation — 
the first increase in the history of the pro- 
gram. And finally, workers would not be 
denied benefits simply because they sought 
to develop another marketable skill through 
retraining. 

It is estimated that 150,000 workers will 
exhaust their regular unemployment insur- 
ance in April 1962. The number will ex- 
ceed 100,000 in all but one of the remaining 
months of the year. Many of these have a 
long work history but, because of automa- 
tion or other technological developments, 
will find it difficult to obtain re-employ- 
ment. We cannot, with the expiration 
of the present Temporary Extended Un- 
employment Compensation program, ab- 
dicate our responsibility to these workers. 
Adequate provision should be made for 
them. 

I urge that early consideration be given to 
the legislation calling for permanent im- 



Dear Mr, : 

The imminent expiration of the Tempo- 
rary Extended Unemployment Compensa- 
tion program at a time when unemployment 
is still high and there are large numbers of 
long-term unemployed makes enactment of 
the permanent improvements I have recom- 
mended in the existing Federal-State un- 
employment system especially urgent. This 
legislation is a vital part of the programs I 
believe essential to assure sustained pros- 
perity and to strengthen our manpower base. 

Although the February unemployment 
figures showed a heartening decline in the 
number out of work there are still 4,543,000 
workers who need help. The number of 
long-term unemployed — those who have 
been jobless for 15 weeks or longer — totals 
1,400,000. Unless prompt action is taken 
workers who exhaust their regular benefits 
after March 31, 1962, will no longer be able 
to receive any unemployment compensation. 
The serious crisis which compelled Congres- 
sional action last year has not abated for 
these workers, but the protection provided 
by the law will shortly expire unless the 
Congress acts. 

Twice in recent years, in 1958 and again 
in 1961, the Congress has taken steps to 
provide unemployment compensation bene- 
fits for the long-term unemployed. As tem- 
porary stop-gap measures these Acts served 
a valuable purpose. They have also proven 
the need for a permanent modification in the 
system of benefits. 

The merits of the proposals for perma- 
nent legislation I have recommended are 
well-established. The wider coverage, ex- 
tended benefit periods and increased benefit 
amounts will lessen the hardship and suffer- 
ing that accompany unemployment and will, 
at the same time, provide a stimulus to 
business. 



212 



John F. Kennedy, 7962 



Mar. 12 [82] 



provement of the Federal-State unemploy- 
ment insurance system. 
Sincerely, 

John F. Kennedy 



note: This is the text of identical letters addressed 
to the Honorable Lyndon B. Johnson, President of 
the Senate, and to the Honorable John W. McCor- 
mack. Speaker of the House of Representatives. 
See also Item 120. 



81 Remarks on Accepting Invitation To Address a Rally in 
Support of Medical Care for the Aged. March 12, 1962 



I WANT to express my appreciation to my 
old colleague, and friend, former Congress- 
man Aime Forand, and Mr. Adolph Held, 
for the invitation to come to New York 
on May 20th to speak at Madison Square 
Garden in support of this program. 

I believe this program to be vitally impor- 
tant. It involves the interests of seventeen 
million Americans vi^ho have reached retire- 
ment age, vi^ho are faced with great burdens 
in the area of medical care. And in addition 
to that, it concerns millions of other Amer- 
icans of younger age who have the respon- 
sibility of educating their children and at 
the same time the age-old responsibility of 
caring for their parents. 

And I know too many cases of people 
who have been caught, in their thirties and 
forties, who have been faced with this prob- 
lem and have had to sacrifice the interests 
of either their children or their parents in 
order to make both ends meet. 

I am hopeful, and I believe strongly, that 



the Congress should pass this legislation this 
year. It will provide a very effective pro- 
tection for our older citizens. It will permit 
them through social security, which has 
worked so well for so many years, to protect 
their interests through their working life. 

I am delighted to come here. I under- 
stand that you are going to have rallies sim- 
ilar to this in a number of other cities on 
that same day, and I believe that with this 
kind of public support, that the Congress of 
the United States can enact this legislation 
this year. I believe it is important that it 
does so, and I think if the people of the 
United States indicate their strong support 
for this proposal, the Congress will enact it. 

ril be there. 

note: The President spoke in the Fish Room at the 
White House. In his opening words he referred to 
former U.S. Representative Aime J. Forand of Rhode 
Island, chairman, National Council of Senior Citi- 
zens, and to Adolph Held, chairman, Golden Ring 
and Senior Citizens Clubs of New York. 



82 Message to the American Association for the United 
Nations. March 12, 1962 



THE Twelfth Annual Conference of Na- 
tional Organizations called by the American 
Association for the United Nations comes as 
a propitious reminder of the range and depth 
of this country's support of the United Na- 
tions. 

Both by its promise and by its actions, the 
U.N. has justified that support over the 
years. 



The Sixteenth Session of the General As- 
sembly ended last month with a matchless 
record of solid accomplishments. 

It rejected emphatically a powerful attack 
against the integrity of the Secretariat and 
went on to a series of positive steps which 
are admirably summarized in the theme of 
your conference "The U.N. Decade of De- 
velopment." 



213 



[82] Mar. 12 



Public Papers of the Presidents 



In the course of its work the Sixteenth 
General Assembly adopted a set of guiding 
principles and agreed to the new approach 
to general and complete disarmament which 
will get under way in Geneva on Wednes- 
day. It extended the Charter of the United 
Nations to outer space and established a new 
Committee on the Peaceful Uses of Outer 
Space which begins its work next week.. It 
adopted a resolution calling for an expanded 
and intensified program for econbmic and 
social progress in the less developed world 
in the decade ahead. 

We can be proud of our initiatives and of 
the U.N. response in these three critical 
areas of disarmament, outer space, and rapid 
modernization of the emerging nations. If 
real progress can be made in these three 
areas, the present decade can be the most 
exciting and rewarding time in history. 

To sustain its present initiative as a force 
for peace and human progress the U.N., of 
course, must regain a sound and orderly 
financial position. The three-point financial 
plan approved by the General Assembly is 
the only proposal put forth at the U.N. or 
elsewhere which will meet the requirements 



and is the only one which has the approval 
of the General Assembly. The U.N. bond 
issue, which is the key part of the financing 
plan, has become the symbol and substance 
of support of the United Nations by its 
members. 

Last week Finland and Norway pur- 
chased the first of the U.N. bonds. A dozen 
more nations will follow shordy. The world 
is now watching to see whether the United 
States will continue to play its full part in 
helping the United Nations to make this a 
decade in which the world moves dramati- 
cally toward the peaceful and progressive 
world foreseen in the Charter. 

I look forward to meeting with your lead- 
ers at the White House tomorrow, and I 
welcome the evidence offered by your or- 
ganizations that bipartisan support for the 
U.N. in its present financial crisis is stronger 
than ever. Please accept my best wishes for 
a most productive conference. 

John F. Kennedy 

note: The President's message was read by Herman 
W. Steinkraus, President of the Association, at an 
evening meeting of the Conference of National 
Organizations at the Statler Hotel in Washington. 



83 Special Message to the Congress on Foreign Aid. 
March 13, 1962 



To the Congress of the United States: 

Last year this nation dedicated itself to 
a "Decade of Development," designed to 
help the new and developing states of the 
world grow in political independence, eco- 
nomic welfare and social justice. 

Last September, in support of this effort, 
the Congress enacted fundamental changes 
in our program of foreign assistance. 

Last November the Executive Branch 
drastically reorganized and restafled this 
program in accordance with the Congres- 
sional mandate. 

Today the "decade" is only four months 
old. It would surely be premature to make 
any claims of dramatic results. Our new 
aid program, addressed to the specific needs 



of individual countries for long-term devel- 
opment, presupposes basic changes, careful 
planning and gradual achievement. Yet 
these few months have shown significant 
movement in new directions. The "turn- 
around" has begun. 

Our new aid policy aims at strengthening 
the political and economic independence 
of developing countries — ^which means 
strengthening their capacity both to master 
the inherent stress of rapid change and to 
repel Communist efforts to exploit such 
stress from within or without. In the frame- 
work of this broad policy, economic, social 
and military development take their proper 
place. In Washington our aid operations 
have been largely unified under the direction 



214 



John F. Kennedy, 7962 



Mar. 13 [83] 



of the Administrator of the Agency for Inter- 
national Development. Recipient countries 
are improving their planning mechanisms, 
devising country development plans, and 
beginning extensive programs of self-help 
and self-reform. In addition to long range 
programs developed w^ith India, Nigeria and 
others v^e have, under the new^ authority 
granted by the Congress, entered into a new^ 
type of long-term commitment with tw^o 
nations — Pakistan and Tanganyika — after 
the most painstaking reviev^ of their pro- 
posed development plans, and others will 
follow. In addition to placing emphasis 
on the improvement of internal security 
forces, we are giving increased attention 
to the contribution which local military 
forces can make through civic action pro- 
grams to economic and social development. 

In financing these programs, we are re- 
lying more heavily than before on loans 
repayable in dollars. Other institutions are 
joining with us in this effort — not only 
private institutions but also the United 
Nations, the International Bank for Recon- 
struction and Development, the Organiza- 
tion of American States and the Inter- 
American Development Bank. We have 
urged other industrialized countries to de- 
vote a larger share of their resources to the 
provision of capital to the less developed 
nations. Some have done so — and we are 
hopeful that the rest will also recognize their 
stake in the success and stability of the 
emerging economies. We are continuing, 
in view of our balance of payments situa- 
tion, to emphasize procurement within the 
United States for most goods required by 
the program. And we are working toward 
strengthening the foreign exchange position 
of the emerging countries by encouraging 
the development of new trade patterns. The 
proposed new Trade Expansion Act is a 
most important tool in facilitating this trend. 

Much more, of course, could be said. But 
having set forth last year in a series of 
messages and addresses on foreign aid the 
goals we seek and the tools we need, it is not 
necessary to repeat to the Congress this year 



our nation's basic interest in the development 
and freedom of other nations — or to review 
all of the initiatives launched under last 
year's programs. The Congress is familiar 
with these arguments and programs, as well 
as its own role and contribution in enacting 
long-term financing authority. Thus the 
foreign aid legislation submitted this year 
does not require reconsideration of these 
questions. It is instead limited primarily to 
the new authorizations required annually 
under the terms of last year's law. The only 
major change proposed is the establishment 
of a separate long-term Alliance for Progress 
fund. The total amounts requested were 
included in the Federal Budget previously 
submitted for fiscal 1963 and the authorizing 
legislation enacted last year, and have in fact 
been reduced in some instances. They can- 
not, I believe, be further reduced if the 
partnership on which we are now em- 
barked — a joint endeavor with each devel- 
oping nation and with each aid-giving 
nation — is to demonstrate the advances in 
human well-being which flow from eco- 
nomic development joined with political 
liberty. For we should know by now that 
where weakness and dependence are not 
transformed into strength and self-reliance, 
we can expect only chaos, and then tyranny, 
to follow. 



Because Development Lending and Mili- 
tary Assistance appropriations for Fiscal 
Year 1963 were authorized in the Foreign 
Assistance Act of 1961, no new authoriza- 
tions for these two programs are needed. 
I am proposing new authorization and ap- 
propriation of $335 million for Development 
Grants; $481.5 million for Supporting As- 
sistance; $148.9 million for contributions to 
International Organizations; $100 million 
for Investment Guarantees; $400 million for 
the Contingency Fund; and $60 million for 
administrative costs and other programs. 
I am also proposing appropriations for 1963 
of $2,753 million, including the $1,250 mil- 



215 



[83] Mar. 13 



Public Papers of the Presidents 



lion already authorized for development 
lending, and $1,500 million ($200 million 
below that authorized) for military assist- 
ance.. The total appropriation request for 
the foreign economic and military assistance 
program for fiscal year 1963 is $4,878 million. 

These recommendations are based upon 
a careful examination of the most urgent 
needs of each country and area. Each of 
these forms of assistance, in these amounts, 
is essential to the achievement of our over- 
all foreign assistance objectives. The total 
is less than the estimates in the Budget 
because of a reduction in my request for 
Supporting Assistance. 

One item in particular deserves attention. 
The past year has amply demonstrated that 
rapid and unpredictable changes in the 
w^orld situation of direct interest to our 
security cannot be foreseen or predicted 
accurately at the time Congress acts upon 
the appropriations. I therefore urge the 
Congress to recognize this need for flexibil- 
ity to meet contingencies and emergencies 
and to approve the full authorization and 
appropriation requested of $400 million. 



The Charter of Punta del Este w^hich 
last August established the Alliance for 
Progress is the framev^^ork of goals and 
conditions for v^hat has been called "a peace- 
ful revolution on a Hemispheric scale." 

That revolution had begun before the 
Charter v^as draw^n. It w^ill continue after 
its goals are reached. If its goals are not 
achieved, the revolution v^ill continue but its 
methods and results v^ill be tragically dif- 
ferent. History has removed for govern- 
ments the margin of safety betv^een the 
peaceful revolution and the violent revolu- 
tion. The luxury of a leisurely interval is 
no longer available. 

These w^ere the facts recognized at Punta 
del Este. These v^ere the facts that dictated 
the terms of the Charter. And these are the 



facts vi^hich require our participation in this 
massive cooperative effort. 

To give this program the special recogni- 
tion and additional resources which it re- 
quires, I therefore propose an authorization 
of $3 billion for the Alliance for Progress 
for the next four years. Of the $3 billion, 
an authorization and appropriation of $600 
million is being requested for 1963, with up 
to $100 million to be used for grants and the 
balance of $500 million or more for develop- 
ment loans. This authorization will be 
separate from and supplementary to the $6 
billion already authorized for loans for de- 
velopment for 1963 through 1966, which will 
remain available for use throughout the 
world. 

During the year beginning last March over 
$1.0 billion has been committed in Latin 
America by the United States in support of 
the Alliance, fulfilling the pledge we made 
at the first Punta del Este meeting, and 
launching in a very real way for this Hemi- 
sphere a dramatic Decade of Development. 
But even with this impressive support, the 
destiny of the Alliance lies largely in the 
hands of the countries themselves. For even 
large amounts of external aid can do no more 
than provide the margin which enables each 
country through its own determination and 
action to achieve lasting success. 

The United States recognizes that it takes 
time — to develop careful programs for na- 
tional development and the administrative 
capacity necessary to carry out such a pro- 
gram — ^to go beyond the enactment of land 
reform measures and actually transfer the 
land and make the most productive use of 
it — to pass new tax laws and then achieve 
their acceptance and enforcement. It is 
heartening, therefore, that the changes called 
for by the Alliance for Progress have been 
the central issue in several Latin American 
elections — demonstrating that its effects will 
be deep and real. Under the Organization 
of American States, nine outstanding econo- 
mists and development advisors have begun 



216 



John F. Kennedy, 1962 



Mar. 13 [83] 



to assist countries in critically reviewing their 
plans. Three Latin American countries have 
already completed and submitted for reviev^^ 
their plans for the more effective mobiliza- 
tion of their resources tov^ard national de- 
velopment. The others are creating and 
strengthening their mechanisms for de- 
velopment planning. A number of Latin 
American countries have already taken sig- 
nificant steps toward land or tax reform; 
and throughout the region there is a new 
ferment of activity, centered on improve- 
ments in education, in rural development, 
in public administration, and on other essen- 
tial institutional measures required to give 
a sound basis for economic growth. 

But more important still is the changed 
attitudes of peoples and governments already 
noticeable in Latin America. The Alliance 
has fired the imagination and kindled the 
hopes of millions of our good neighbors. 
Their drive toward modernization is gaining 
momentum as it unleashes the energies of 
these millions; and the United States is be- 
coming increasingly identified in the minds 
of the people with the goal they move to- 
ward: a better life with freedom. Our 
hand — extended in help — is being accepted 
without loss of dignity. 

But the Alliance is barely under way. It 
is a task for a decade, not for a year. It 
requires further changes in oudook and 
policy by all American States. New institu- 
tions will need to be formed. New plans — 
if they are to be serious — will have to assume 
a life other than on paper. 



One of the brightest pages of the world's 
history has been the series of programs this 
Nation has devised, established and imple- 
mented following the Second World War to 
help free peoples achieve economic develop- 



ment and the control of their own destinies. 
These programs, which have been solidly 
based on bipartisan support, are the proud 
manifestations of our deep-seated love and 
pursuit of freedom for individuals and for 
nations. 

I realize that there are among us those 
who are weary of sustaining this continual 
effort to help other nations. But I would 
ask them to look at a map and recognize that 
many of those whom we help live on the 
"front-lines" of the long twilight struggle 
for freedom — that others are new nations 
posed between order and chaos — and the rest 
are older nations now undergoing a turbu- 
lent transition of new expectations. Our 
efforts to help them help themselves, to 
demonstrate and to strengthen the vitality 
of free institutions, are small in cost com- 
pared to our military oudays for the defense 
of freedom. Yet all of our armies and atoms 
combined will be of little avail if these na- 
tions fall, unable to meet the needs of their 
own people, and unable to stave off within 
their borders the rise of forces that threaten 
our security. This program — and the pas- 
sage of this bill — are vital to the interests of 
the United States. 

We are, I am confident, equal to our re- 
sponsibilities in this area — responsibilities as 
compelling as any our nation has known. 
Today, we are still in the first months of a 
decade's sustained effort. But I can report 
that our efforts are underway; they are mov- 
ing in the right direction; they are gaining 
momentum daily; and they have already 
begun to realize a small part of their great 
potential. The turn-around has indeed 
begun. 

John F. Kennedy 

note: On October 23 the President approved the 
Foreign Aid and Related Agencies Appropriation 
Act, 1963 (Public Law 87-872, 76 Stat. 11 63). 



715-405 0—64- 



-18 



217 



[84] Mar. 13 



Public Papers of the Presidents 



84 Remarks of Welcome to President Ahidjo of the Cameroon 
at the Washington National Airport. March 13, 1962 



Mr. President: 

I want to welcome you to the United States 
and to this Capital on behalf of the American 
people. I think all of us, living as we do a 
great many thousand miles from your own 
country, having a different history, separated 
in time and space, are impressed by the ef- 
forts that you personally have made, and 
your people have made, to build a viable 
and strong economy and country. 

You, as one of the youngest Presidents in 
the world, having those qualities which 
young Presidents like to possess, have 
demonstrated, I think, a leadership in unit- 
ing a country with different languages which 
had not known a sense of nationhood and 
community until recent years. 

Your particular efforts in attempting to 
secure a better life for your people have made 
a profound impression upon us here. We 
are extremely glad to welcome you. We 
hope that you will find here in the United 
States things which will be of value to you 
in your efforts. And I can assure you that 
we regard your visit here as an opportunity 
for us to learn more about your country and 
its people and also about the problems and 
the opportunities of Africa which loom so 
large now on the world scene. 

This is a most fortunate time, in my 
opinion, for you to visit us. Your country 
is the hinge geographically upon which 
much of Africa turns, and I believe it can be 
the hinge upon which much of Africa can 
turn politically and economically. 

So, Mr. President, we welcome you here 
as the second youngest President in the 
world of a very young country. We wel- 
come you here as the kind of responsible. 



progressive leader upon which I believe the 
hopes of freedom in Africa and in much of 
the world depends. 

Mr. President, we are proud to have you 
as our guest. 

note: President Ahidjo responded (through an in- 
terpreter) as follows: 
Mr. President: 

I am extremely happy to have been able to answer 
your kind invitation by coming to the United 
States — to this great country which we so greatly 
admire and to which I bring the expression of thanks 
for the words which you have pronounced about 
my country and about myself. 

It is really a great pleasure for me to return to 
the United States, to be greeted in this country by 
you, Mr. President. And I can say that my hap- 
piness is equaled only by the friendship between 
our two nations. 

And I bring you, Mr. President, the cordial salute 
of the entire people of the Cameroon. 

Now ever since you became the President of the 
United States, we have followed every minute with 
great attention, with great friendliness, and with 
great sympathy your dynamic policies and your 
efforts to consolidate friendship among nations. 
Your will to solve all problems by dialog and by 
negotiations overcome all of the obstacles which still 
have to be overcome, before true, genuine peace is 
reached. 

I bring to you, Mr. President, the salute of all the 
people of Africa, and in particular of the Cameroon, 
all of whom are grateful to you, Mr. President, for 
the attitude which was that of yourself and of your 
government towards our continent, towards our 
people. 

It is the duty of all those who are responsible for 
the fate of the world to meet often, in order to 
consult, to understand each other better, to develop 
together all the solutions which are necessary. And 
it is under this triple invocation — this triple duty 
which we all have that I place my first official visit 
in the United States as President of my country. 

Thank you. 



218 



John F. Kennedy, igSi 



Mar. 13 [85] 



85 Toasts of the President and President Ahidjo. 
March 13, 1962 



Ladies and gentlemen: 

I want to express, on behalf of all of us, 
our great pleasure in having the President 
of the Cameroon visit us, and the members 
of his Cabinet. The President is the second 
youngest President in the world, and it 
"shocked" me to find out that the President 
of the Central African Republic is thirty 
years of age. The President here is 36-7 
and feels that those older than that should 
step aside! 

He has done an extraordinary job — and 
the members of his government. He repre- 
sents a country which is divided between 
those who speak English and French. He 
tells me that he addresses his Minister of 
Justice, who sits here, through an interpreter. 
I have the same problem, very often, in — 
\laughter\. 

And to be able to take a country which 
has newly emerged, divided between English 
and French — he speaks French — to be able 
to bind it and give it a sense of community 
and a sense of the past, and most importantly 
a sense of the future, I think indicates a true 
test of leadership. 

We have been very fortunate, I think, in 
recent months in having had visit us a 
number of men who have guided their 
countries through a period of independence 
and who are now attempting to build their 
countries as a stable and progressive, liberal 
and independent, sovereign state. So that 
I think we are really in a very extraordinary 
historical period, and we are meeting a 
whole series of men — this is particularly 
true of Africa — who in the last 5 years have 
become the fathers of their country, who 
will bear in times to come the same position 
of prestige and influence that our founding 
fathers bear in our lives. So that this is a 
privileged period for us, and we are par- 
ticularly happy to have our guest of honor 
here today. 



I hope he will not mind my saying that in 
the last months at the United Nations, his 
country and the United States voted more 
frequently together than any other country 
on the continent of Africa. And I would 
like to think that that is because both of our 
countries wish to identify themselves with 
the cause of the great majority of people 
who wish to be free and independent. 

This association, even though your tradi- 
tion is different, even though you are sepa- 
rated from us by so many periods of space 
and distance and time, we do feel happy 
to be able to establish this close contact with 
this visit. And we are glad that you have 
brought the members of your administra- 
tion — your Foreign Minister — your Minister 
of Justice — the Minister who holds perhaps 
the most difficult task, that of economic de- 
velopment — and the other members of your 
Cabinet; therefore we wish you to know, 
Mr. President, that we look to Africa with 
the greatest interest, the greatest hope. 

Africa, in a sense, is a newly discovered 
continent for the people of America, and we 
are attempting to learn, and to join in every 
possible way, to associate ourselves with the 
best in Africa. And in visiting here, we feel 
that this lunch typifies that desire. So I hope 
that everyone will join with me in drinking 
to the people of his country — and most par- 
ticularly to the President of the Cameroon. 

note: The President proposed this toast at a lunch- 
eon in the State Dining Room at the White House. 
In his response (through an interpreter) President 
Ahidjo expressed his happiness and pride in being 
received as a friend. "The entire people of Cam- 
eroon know," he added, "that it is to them that your 
friendship is directed. They also know that the 
way in which you have greeted us here bears wit- 
ness to the great interest which you have for our 
country, for our people. Please, Mr. President, 
believe that our great gratitude for this is limitless. 
We do not intend to forget, ever, the help you 
have given us, not only now but also before our 
independence. At the moment we need friends." 



219 



[85] Mar. 13 



Public Papers of the Presidents 



President Ahidjo concluded by stating that he 
and the members of his Cabinet were happy 
"because we understand the interest that you bear 
not only to us but to the cause of the equality of 
all men in all places, to the cause of economic 
development for the countries which need it so 



badly — ^and above all, for the cause of peace and 
international understanding.'* 

During his remarks President Kennedy referred 
to Jean-Faustin Betayne, Njoya Arouna, and Victor 
Kanga, Cameroon Ministers of Foreign Affairs, 
Justice, and National Economy, respectively. 



86 Address on the First Anniversary of the AUiance 
for Progress. March 13, 1962 



Mr. Vice President, Ambassadors from our 
sister Republics, members of the OAS, the 
nine wise men upon whom so much de- 
pends, Members of the Congress, whom I 
am very glad to see here today — on whom 
we depend so much in guiding and support- 
ing and stimulating and directing our poli- 
cies in this Hemisphere — Ambassador 
Moscoso, the Coordinator of the Alliance for 
Progress, gentlemen: 

One year ago, on a similar occasion, I 
proposed the Alliance for Progress. That 
was the conception, but the birth did not 
take place until some months later, at Punta 
del Este. That was a suggestion for a con- 
tinent-wide cooperative effort to satisfy the 
basic needs of the American people for 
homes, work, land, health and schools, for 
political liberty and the dignity of the spirit. 

Our mission, I said, was "to complete the 
revolution of the Americas — to build a 
Hemisphere where all men can hope for a 
suitable standard of living — and all can live 
out their lives in dignity and freedom." 

I then requested a meeting of the Inter- 
American Economic and Social Council to 
consider the proposal. And, seven months 
ago, at Punta del Este, that Council met and 
adopted the Charter which established the 
Alianza para el Progreso and declared, and 
I quote, "We, the American Republics, 
hereby proclaim our decision to unite in a 
common effort to bring our people acceler- 
ated economic progress and broader social 
justice within the framework of personal 
dignity and individual liberty." 

Together, the free nations of the Hemi- 
sphere pledged their resources and their 
energies to the Alliance for Progress. To- 



gether they pledged to accelerate economic 
and social development and to make the 
basic reforms that are necessary to ensure 
that all would participate in the fruits of 
this development. Together they pledged 
to modernize tax structures and land ten- 
ure — ^to wipe out illiteracy and ignorance — 
to promote health and provide decent hous- 
ing — to solve the problems of commodity 
stabilization — to maintain sound fiscal and 
monetary policies — ^to secure the contribu- 
tions of private enterprise to development — 
to speed the economic integration of Latin 
Amercia. And together they established the 
basic institutional framework for this im- 
mense, decade-long development. 

This historic Charter marks a new step 
forward in the history of our Hemisphere^ 
It is a reaffirmation of the continued vitality 
of our Inter-American system, a renewed 
proof of our ability to meet the challenges 
and perils of our time, as our predecessors 
met these challenges in their own days. 

In the late eighteenth and early nineteenth 
century we struggled to provide political 
independence in this Hemisphere. 

In the early twentieth century we worked 
to bring about a fundamental equality be- 
tween all the nations of this Hemisphere 
one with another — to strengthen the ma- 
chinery of regional cooperation within a 
framework of mutual respect, and under 
the leadership of Franklin Roosevelt and 
the Good Neighbor Policy that goal was 
achieved a generation ago. 

Today we seek to move beyond the ac- 
complishments of the past — to establish the 
principle that all the people of this Hemi- 
sphere are entitled to a decent way of life — 



220 



John F. Kennedy, 7962 



Mar. 13 [86] 



and to transform that principle into the 
reality of economic advance and social 
justice on, which political equality must be 
based. 

This is the most demanding goal of all. 
For we seek not merely the welfare and 
equality of nations one with another — but 
the welfare and the equality of the people 
within our nations. In so doing we are 
fulfilling the most ancient dreams of the 
founders of this Hemisphere, Washington, 
Jefferson, Bolivar, Marti, San Martin, and 
all the rest. 

And I believe that the first seven months 
of this Alliance have strengthened our confi- 
dence that this goal is within our grasp. 

Perhaps our most impressive accomplish- 
ment in working together has been the 
dramatic shift in the thinking and the atti- 
tudes which has occurred in our Hemisphere 
in these seven months. The Charter of 
Punta del Este posed the challenge of de- 
velopment in a manner that could not be 
ignored. It redefined the historic relation- 
ships between the American nations in terms 
of the fundamental needs and hopes of the 
twentieth century. It set forth the condi- 
tions and the attitudes on which develop- 
ment depends. It initiated the process of 
education without which development is 
impossible. It laid down a new principle 
of our relationship — the principle of col- 
lective responsibility for the welfare of the 
people of the Americas. 

Already elections are being fought in 
terms of the Alliance for Progress. Already 
governments are pledging themselves to 
carry out the Charter of Punta del Este. 
Already people throughout the Hemi- 
sphere — in schools and in trade unions, in 
chambers of commerce, in military estab- 
lishments, in government, on the farms — 
have accepted the goals of the Charter as 
their own personal and political commit- 
ments. 

For the first time in the history of Inter- 
American relations our energies are con- 
centrated on the central task of democratic 
development. 



This dramatic change in thought is essen- 
tial to the realization of our goals. For 
only by placing the task of development in 
the arena of daily thought and action among 
all the people can we hope to summon up 
the will and the courage which that task 
demands. This first accomplishment, there- 
fore, is essential to all the others. 

Our second achievement has been the 
establishment of the institutional framework 
within which our decade of development 
will take place. We honor here today the 
OAS Panel of Experts — a new adventure in 
Inter-American cooperation — drawn from 
all parts of the continent — charged with the 
high responsibility — almost unprecedented 
in any international cooperative effort — of 
evaluating long-range development plans, 
reviewing the progress of these plans, and 
helping to obtain the financing necessary to 
carry them out. This group has already 
begun its work. And here, today, I reaffirm 
our government's commitment to look to 
this Panel for advice and guidance in the 
conduct of our joint effort. 

In addition, the OAS, the Economic Com- 
mission for Latin America and the Inter- 
American Bank have offered planning as- 
sistance to Latin American nations — the 
OAS has begun a series of studies in critical 
development fields — and a new ECLA Plan- 
ning Institute is being established to train 
the young men who will lead the future 
development of their countries. And we 
have completely reorganized in our own 
country our assistance program, with central 
responsibility now placed in the hands of a 
single coordinator. 

Thus, within seven months, we have built 
the essential structure of the institutions, 
thought and policy on which our long-term 
effort will rest. But we have not waited for 
this structure to be completed in order to 
begin our work. 

Last year I said that the United States 
would commit one billion dollars to the first 
year of that Alliance. That pledge has now 
been fulfilled. The Alliance for Progress 
has already meant better food for the chil- 



221 



[86] Mar. 13 



Public Papers of the Presidents 



dren of Puno in Peru, new schools for people 
in Colombia, new homes for campesinos in 
Venezuela — which I saw myself during my 
recent visit. And in the year to come mil- 
lions more will take new hope from the 
Alliance for Progress as it touches their daily 
life — as it must. 

In the vital field of commodity stabiliza- 
tion I pledged the efforts of this country to 
try to work with you to end the frequent, 
violent price changes which damage the 
economies of so many Latin American coun- 
tries. Immediately after that pledge was 
made, we began work on the task of formu- 
lating stabilization agreements. In Decem- 
ber 1 96 1 a new coffee agreement, drafted by 
a committee under a United States chairman, 
was completed. Today that agreement is in 
process of negotiation. I can think of no 
single measure which can make a greater 
contribution to the cause of development 
than effective stabilization of the price of 
coffee. In addition the United States has 
participated in the drafting of a cocoa agree- 
ment; and we have held discussion about the 
terms of possible accession to the tin agree- 
ment. 

We have also been working with our 
European allies — and I regard this as most 
important — in a determined effort to ensure 
that Latin American products will have 
equal access to the Common Market. Much 
of the economic future of this Hemisphere 
depends upon ready availability of the mar- 
kets of the Atlantic Community, and we will 
continue these efforts to keep these markets 
open in the months ahead. 

The countries of Latin America have also 
been working to fulfill the commitments of 
the Charter. The report of the Inter- Ameri- 
can Bank contains an impressive list of 
measures being taken in each of the eighteen 
countries — measures ranging from the 
mobilization of domestic resources to new 
education and housing programs — measures 
within the context of the Act of Bogota, 
passed under the administration of my pred- 
ecessor. President Eisenhower, and the 
Alliance for Progress Charter. 



Nearly all the governments of the Hemi- 
sphere have begun to organize national 
development programs — and in some cases 
completed plans have been presented for 
review. Tax and land reform laws are on 
the books, and the national legislature of 
nearly every country is considering new 
measures in these critical fields. New pro- 
grams of development, of housing, of agri- 
culture and power are underway. 

These are all heartening accomplish- 
ments — the fruits of the first seven months 
of work in a program which is designed to 
span a decade. But all who know the mag- 
nitude and urgency of the problems realize 
that we have just begun — that we must act 
much more rapidly and on a much larger 
scale if we are to meet our development goals 
in the months and years to come. 

I pledge this country's effort to such an 
intensified effort. And I am confident that 
having emerged from the shaping period of 
our Alliance, all the nations of this Hemi- 
sphere will accelerate their own work. 

For we all know that no matter what 
contribution the United States may make, 
the ultimate responsibility for success lies 
within the developing nation itself. For 
only you can mobilize the resources, make 
the reforms, set the goals and provide the 
energies which will transform our external 
assistance into an effective contribution to 
the progress of our continent. Only you can 
create the economic confidence which will 
encourage the free flow of capital, both 
domestic and foreign — the capital which, 
under conditions of responsible investment 
and together with public funds, will produce 
permanent economic advance. Only you 
can eliminate the evils of destructive infla- 
tion, chronic trade imbalances and wide- 
spread unemployment. Without determined 
efforts on your part to establish these condi- 
tions for reform and development, no 
amount of outside help can do the job. 

I know the difficulties of such a task. It is 
unprecedented. Our own history shows 
how fierce the resistance can be to changes 
which later generations regard as part of the 



222 



John F. Kennedy, 1962 



Mar. 13 [86] 



normal framework of life. And the course 
of rational social change is even more hazard- 
ous for those progressive governments v^ho 
often face entrenched privilege of the 
right and subversive conspiracies on the 
left. 

For too long my country, the wealthiest 
nation in a continent which is not wealthy, 
failed to carry out its full responsibilities to 
its sister Republics. We have now accepted 
that responsibility. In the same way those 
who possess wealth and power in poor na- 
tions must accept their own responsibilities. 
They must lead the fight for those basic 
reforms which alone can preserve the fabric 
of their societies. Those who make peaceful 
revolution impossible will make violent 
revolution inevitable. 

These social reforms are at the heart of the 
Alliance for Progress. They are the pre- 
condition to economic modernization. And 
they are the instrument by which we assure 
the poor and hungry — the worker and the 
campesino — his full participation in the bene- 
fits of our development and in the human 
dignity which is the purpose of all free 
societies. At the same time we sympathize 
with the difficulties of remaking deeply 
rooted and traditional social structures. We 
ask that substantial and steady progress 
toward reform accompany the effort to 
develop the economies of the American 
nations. 

A year ago I also expressed our special 
friendship to the people of Cuba and the 
Dominican Republic and the hope that they 
would soon rejoin the society of free men, 
uniting with us in this common effort. To- 
day I am glad to welcome among us the 
representatives of a free Dominican Repub- 
lic; and to reaffirm the hope that, in the not 
too distant future, our society of free nations 
will once again be complete. 

But we must not forget that our Alliance 
for Progress is more than a doctrine of de- 
velopment — a blueprint of economic ad- 
vance. Rather it is an expression of the 
noblest goals of our society. It says that 
want and despair need not be the lot of free 



men. And those who may occasionally get 
discouraged with the magnitude of the task, 
have only to look to Europe fifteen years ago, 
and today, and realize the great potential 
which is in every free society when the 
people join and work together. It says in 
our Hemisphere that no society is free until 
all its people have an equal opportunity to 
share the fruits of their own land and their 
own labor. And it says that material prog- 
ress is meaningless without individual free- 
dom and political liberty. It is a doctrine of 
the freedom of man in the most spacious 
sense of that freedom. 

Nearly a century ago Jose Hernandez, the 
Argentine poet, wrote, "America has a great 
destiny to achieve in the fate of mankind . . . 
One day . . . the American Alliance will 
undoubtedly be achieved, and the American 
Alliance will bring world peace . . . America 
must be the cradle of the great principles 
which are to bring a complete change in the 
political and social organization of other 
nations." 

We have made a good start on our jour- 
ney; but we have still a long way to go. The 
conquest of poverty is as difficult if not more 
difficult than the conquest of outer space. 
And we can expect moments of frustration 
and disappointment in the months and years 
to come. But we have no doubt about the 
outcome. For all history shows that the 
effort to win progress within freedom repre- 
sents the most determined and steadfast 
aspiration of man. 

We are joined together in this Alliance as 
nations united by a common history and 
common values. And I look forward — as 
do all the people of this country — to the day 
when the people of Latin America will take 
their rightful place beside the United States 
and Western Europe as citizens of indus- 
trialized and growing and increasingly 
abundant societies. The United States — 
Europe — and Latin America — almost a bil- 
lion people — a bulwark of freedom and the 
values of Western civilization — invulnerable 
to the forces of despotism — lighting the path 
to liberty for all the peoples of the world. 



223 



[86] Mar. 13 



Public Papers of the Presidents 



This is our vision — and, with faith and 
courage, we will realize that vision in our 
own time. 
Thank you. 

note: The President spoke in the State Dining Room 
at the White House at a reception for the diplomatic 
corps of the Latin American Republics. In his 
opening remarks he referred to Vice President 



Lyndon B. Johnson; to the "nine wise men" (the 
original members of the Committee of Nine of the 
Alliance for Progress): Hernando Agudelo Villa, 
Colombia, Ernesto Malaccorto, Argentina, Manuel 
Noriega Morales, Guatemala, Phillipe Pasos, Cuba, 
Harvey Perloff, United States, Paul Rosenstein- 
Rodan, United Kingdom, Paul Saez, Chile, Ary 
Torres, Brazil, Gonzalo Robles, Mexico; and to 
Ambassador Teodoro Moscoso, Coordinator of the 
Alliance for Progress. 



87 Joint Statement FoUov^ing Discussions With President 
Ahidjo of the Cameroon. March 14, 1962 



PRESIDENT Ahmadou Ahidjo, who is 
making a five day visit to the United States 
as the guest of President Kennedy, vv^ill 
conclude a two-day stay in Washington 
tomorrow and continue his visit in New 
York. 

Although President Ahidjo has been in 
this country before, this is his first voyage to 
America since his country became inde- 
pendent and since he became its first Chief 
of State. The visit has given the two Presi- 
dents an opportunity to become personally 
acquainted. They have held frank and 
cordial discussions covering a wide range of 
topics of mutual interest to their countries. 
These included a number of world problems, 
in particular the means of accelerating the 
decolonization of Africa, and also of other 
parts of the world and the consolidation of 
the independence of young nations. Presi- 
dent Kennedy congratulated President 
Ahidjo for his successful efforts in the pro- 
gressive development of his country, both in 
combating internal subversion and in achiev- 
ing the reunification of the two parts of 
Cameroon. 

The two Presidents noted with satisfac- 
tion the efforts recently undertaken to create 
African unity. In this connection President 
Ahidjo expressed his satisfaction over the 



role played by the United States in the frame- 
work of United Nations action in the Congo 
in order to hasten the re-establishment of the 
peace and unity of that country. The United 
Nations remains, in the view of both Presi- 
dents, the best means whereby nations can 
discuss issues openly, and the best instru- 
ment for finding solutions to problems that 
menace the peace of the world. 

In the field of cooperation the Presidents 
noted that in addition to a continuing pro- 
gram of economic aid and technical assist- 
ance to the Cameroon, the United States is 
also preparing to make a loan to help finance 
the extension of the trans-Cameroonian rail- 
road. 

The two Presidents agreed to take steps to 
encourage commerce and investment be- 
tween their two countries and noted that a 
United States Trade Mission is tentatively 
scheduled to visit Cameroon in May 1962. 

President Ahidjo and President Kennedy 
agreed that the exchange of views made 
possible by this visit have reaffirmed that 
their two countries have many common 
goals and ideals. They expressed the con- 
viction that the visit has served to strengthen 
and improve the friendly relations between 
the United States and the Federal Republic 
of Cameroon. 



224 



John F. Kennedy, 7962 



Mar. 14 [89] 



88 Joint Statement Following Discussions With Deputy 
Prime Minister McEwen of Australia. March 14, 1962 



THE PRESIDENT today conferred with 
the Australian Deputy Prime Minister and 
Minister for Trade, the Right Honorable 
John McEwen. 

Mr. McEwen, who was accompanied by 
the Australian Ambassador to the United 
States Sir Howard Beale, reviewed with the 
President the importance to Australia of a 
number of current developments in the inter- 
national trade and commodity policy fields, 
including developments relating to the Euro- 
pean Economic Community, and the con- 
siderable degree of common interest of the 
United States and Australia on these ques- 
tions. 



The President and the Deputy Prime 
Minister agreed that an economically strong 
and developing Australia is essential to the 
best interests of both countries in the South- 
west Pacific and expressed mutual confi- 
dence in the continuing close identity of 
view which each country shares on matters 
of common concern. 

Mr. McEwen is on his way to Europe 
where he will meet representatives of the 
British Government and a number of Euro- 
pean Governments for discussions on the 
subject of Britain's proposed entry into the 
European Common Market. 



89 The President's News Conference of 
March 14, 1962 



THE PREsmENT. [i.] I have a letter which 
we are releasing which is to Secretary Rusk, 
and I will read the most significant para- 
graph in regard to the opening of the dis- 
armament conference and American policy 
there. 

It says: 

"My earnest hope is that no effort will be 
spar